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 third
quarter and nine months ended September 30, 2016.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
"We emphasize cost management, and Navios Holding’s operating cost
(G&A plus Opex) is one of the lowest in the industry when
compared to our publicly listed shipping peers. We have engaged in
a number of initiatives that reduce our 2017 daily cash breakeven
by an expected $1,274 or 10.4%. These initiatives include
repurchasing about $60 million in face value of our unsecured
bonds, reducing the average cost of our charter-in fleet and
reducing amortization payments on our commercial bank debt.
We have also repurchased $61 million or 36% of the preferred shares
outstanding."
Angeliki Frangou continued: "On the revenue side, we
outperformed the spot market through Q3 by approximately 50%. This
added over $40.0 million in charter revenue compared to what we
would have recorded if we had chartered out vessels at the average
spot market rate."
HIGHLIGHTS – RECENT DEVELOPMENTS
Unsecured Bond Repurchases
Since July 2016, the Company has bought back a total of $58.9
million in par value of its 8 1/8% Senior Notes due 2019 by using
$30.5 million of cash.
Other Debt Developments
In September 2016, Navios Holdings entered into a $70.0 million
secured credit facility with Navios Maritime Acquisition
Corporation. This facility has a fixed interest rate of 8.75%
compounded semi-annually to be paid upon maturity on November 15,
2018. As of September 30, 2016, the amount drawn was $50.0
million.
In October 2016, the Company prepaid $15.3 million in one of its
secured credit facilities, using $13.8 million cash, thus achieving
a $1.5 million benefit to nominal value.
The Company entered into a new facility to refinance one
Capesize vessel. The amount drawn under the new facility was $16.1
million. The first instalment will be due 15 months from the loan
drawdown. The credit facility bears interest at LIBOR plus 300 bps
per annum. The loan has a tenor of six years and an amortization
profile of 18 years.
Series G and Series H ADS Exchange Program
On November 8, 2016, the Company announced the completion of its
offer to exchange its Series G and Series H Cumulative Redeemable
Preferred Shares. A total of 24,431 Series G and Series H were
validly tendered representing an aggregate nominal value of $61.1
million. We reduced our annual dividend obligation by $5.3 million
and we also eliminated $4.0 million of accrued dividends. The
consideration for the exchange comprised of $8.7 million in cash
and the issuance of a total of 7.6 million shares of common stock
representing a 28% to par cost.
Low Cost Structure - $1,274 Expected Reduction in 2017
Daily Cash Breakeven
Navios Holdings is expected to achieve a reduction of $1,274 in
2017 daily cash breakeven based on the following initiatives:
- Reduction in bank debt cash requirements by $11.4 million for
the next 15 months
- Reduction of annual interest expense by $4.8 million though its
$58.9 million unsecured bond repurchases
- Reduction in cash breakeven of its chartered-in fleet following
the chartering of seven new vessels at an average daily charter-in
cost of $6,827 for 2017
The total estimated available days of the Core Fleet, as
detailed in Exhibit II, are 23,296, including 2,555 days added
after charter-in fleet reconfiguration.
Time Charter Coverage – Positioned to Capture Market
Improvement
Navios Holdings controls a fleet of 66 vessels totaling 6.7
million dwt, of which 40 are owned and 26 are chartered-in under
long-term charters. Navios Holdings currently operates 59 vessels
(19 Capesize, 19 Panamax, 19 Ultra Handymax and two Handysize
vessels) totaling 6.0 million dwt. The current average age of the
operating fleet is 7.8 years. Additionally, Navios Holdings has
seven charter-in vessels expected to be delivered at various dates
beginning in the fourth quarter of 2016 through the first quarter
of 2017.
As of November 14, 2016, Navios Holdings has chartered-out 93.2%
(including 20.6% days at index-linked charters), and 35.2%
(including 26.7% days at index-linked charters) of available days
for the remaining three months of 2016 and for 2017, respectively,
which are expected to generate $29.9 million and $18.6 million in
base revenue, respectively. The average daily charter-out base rate
for the Core Fleet is estimated at $7,829 and $9,341 for the
remaining three months of 2016 and for 2017, respectively. The
average daily charter-in rate for the active long-term charter-in
vessels for the remaining three months of 2016 is estimated at
$12,187.
The above figures do not include the fleet of Navios South
American Logistics Inc. (“Navios Logistics”) and vessels servicing
contracts of affreightment (collectively, the "Core
Fleet").
Exhibit II provides certain details of the Navios Holdings’
fleet. It does not include the fleet of Navios Logistics.
Earnings Highlights
EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic
Loss per Share are non-U.S. GAAP financial measures and should not
be used in isolation or as a substitution for Navios Holdings’
results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, "Disclosure of Non-GAAP
Financial Measures," for a discussion of EBITDA, Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss per Share of Navios
Holdings (including Navios Logistics), and EBITDA of Navios
Logistics (on a stand-alone basis), and a reconciliation of such
measures to the most comparable measures calculated under U.S.
GAAP.
Third Quarter 2016 and 2015 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The third 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 |
| |
|
September 30, |
|
September 30, |
| |
|
2016 |
|
2015 |
| |
|
(unaudited) |
|
(unaudited) |
| Revenue |
|
$ |
113,087 |
|
|
$ |
130,955 |
|
| Net Loss |
|
$ |
(27,503 |
) |
|
$ |
(22,061 |
) |
| Adjusted Net Loss (2) (3) |
|
$ |
(22,420 |
) |
|
$ |
(20,278 |
) |
| Net cash provided by operating activities |
|
$ |
2,140 |
|
|
$ |
20,639 |
|
| EBITDA |
|
$ |
46,389 |
|
|
$ |
37,755 |
|
| Adjusted EBITDA (1) (2) |
|
$ |
38,465 |
|
|
$ |
39,538 |
|
| Basic Loss per Share |
|
$ |
(0.30 |
) |
|
$ |
(0.25 |
) |
| Adjusted Basic Loss per share (2) (3) |
|
$ |
(0.25 |
) |
|
$ |
(0.23 |
) |
| |
| (1) Adjusted EBITDA for
the three months ended September 30, 2016 exclude (a) gain on bond
extinguishment of $16.0 million and (b) $8.0 million loss relating
to our share in Navios Maritime Partners L.P. (“Navios Partners”)
impairment losses. |
| (2) Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss Per Share for the three
months ended September 30, 2015 have been adjusted to exclude $1.8
million non-cash loss on available-for-sale securities. |
| (3) Adjusted Net Loss
and Adjusted Basic Loss Per Share for the three months ended
September 30, 2016 exclude the amounts referred to in footnote (1)
above as well as $13.0 million write-off of intangible assets due
to the early redelivery of a charter-in vessel. |
Revenue from dry bulk vessel operations for the
three months ended September 30, 2016 was $49.7 million as compared
to $63.6 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 1,030 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 $63.4 million for the
three months ended September 30, 2016 as compared to $67.3 million
for the same period during 2015. The decrease was mainly
attributable to (i) a decrease in the volume of cargo moved in the
dry port terminal; and (ii) a decrease in the number of available
days of the cabotage fleet, and was partially mitigated by an
increase in sales of products in the liquid terminal.
Net Loss of Navios Holdings was $27.5 million and $22.1 million
for the three months ended September 30, 2016 and 2015,
respectively. Net Loss was affected by the items described in
the table above. Excluding these items, Adjusted Net Loss of Navios
Holdings for the three months ended September 30, 2016 was $22.4
million as compared to $20.3 million for the same period of 2015.
The $2.1 million increase in Adjusted Net Loss was mainly due to
(i) an increase in depreciation and amortization by $1.0 million;
(ii) a decrease in Adjusted EBITDA by $1.0 million; (iii) an
increase in amortization for deferred drydock and special survey
costs of $0.4 million; (iv) an increase in income tax expense of
$0.3 million; and (v) an increase in share-based compensation
expense of $0.1 million. This overall increase of $2.8 million was
partially mitigated by a decrease in interest expense and finance
cost, net by $0.7 million.
Net income of Navios Logistics was $2.8 million for the three
month period ended September 30, 2016 as compared to $10.6 million
for the same period in 2015.
Adjusted EBITDA of Navios Holdings for the three months ended
September 30, 2016 decreased by $1.0 million to $38.5 million as
compared to $39.5 million for the same period of 2015. The $1.0
million decrease in Adjusted EBITDA was primarily due to (i) a
$17.9 million decrease in revenue; and (ii) a $9.5 million decrease
in equity in net earnings from affiliated companies. This overall
decrease of $27.4 million was partially mitigated by (i) a $21.6
million decrease in time charter, voyage and logistics business
expenses; (ii) a $2.9 million decrease in net income attributable
to noncontrolling interest; (iii) a $1.0 million decrease in other
expense, net; (iv) a $0.6 million decrease in direct vessel
expenses (excluding the amortization of deferred drydock and
special survey costs); and (v) a $0.3 million decrease in general
and administrative expenses (excluding share-based compensation
expenses).
EBITDA of Navios Logistics was $19.1 million for the three month
period ended September 30, 2016 as compared to $26.2 million for
the same period in 2015.
Nine Months Ended September 30, 2016 and 2015 Results
(in thousands of U.S. dollars, except per share data and unless
otherwise stated):
The information for the nine month period ended September 30,
2016 and 2015 presented below was derived from the unaudited
condensed consolidated financial statements for the respective
periods.
| |
|
Nine Month
Period Ended |
|
Nine Month
Period Ended |
| |
|
September 30, |
|
September 30, |
| |
|
2016 |
|
2015 |
| |
|
(unaudited) |
|
(unaudited) |
| Revenue |
|
$ |
320,307 |
|
|
$ |
369,074 |
|
| Net Loss |
|
$ |
(61,384 |
) |
|
$ |
(73,552 |
) |
| Adjusted Net Loss (2) (3) |
|
$ |
(56,301 |
) |
|
$ |
(71,769 |
) |
| Net cash provided by operating activities |
|
$ |
42,277 |
|
|
$ |
22,378 |
|
| EBITDA |
|
$ |
122,867 |
|
|
$ |
96,701 |
|
| Adjusted EBITDA (1) (2) |
|
$ |
114,943 |
|
|
$ |
98,484 |
|
| Basic Loss per Share |
|
$ |
(0.69 |
) |
|
$ |
(0.81 |
) |
| Adjusted Basic Loss per share (2) (3) |
|
$ |
(0.64 |
) |
|
$ |
(0.80 |
) |
| |
| (1) Adjusted EBITDA for
the nine months ended September 30, 2016 exclude (a) gain on bond
extinguishment of $16.0 million and (b) $8.0 million loss relating
to our share in Navios Partners’ impairment losses. |
| (2) Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss Per Share for the nine
months ended September 30, 2015 have been adjusted to exclude $1.8
million non-cash loss on available-for-sale securities. |
| (3) Adjusted Net Loss
and Adjusted Basic Loss Per Share for the nine months ended
September 30, 2016 exclude the amounts referred in footnote (1)
above as well as $13.0 million write-off of intangible assets due
to the early redelivery of a charter-in vessel. |
Revenue from dry bulk vessel operations for the nine months
ended September 30, 2016 was $142.9 million as compared to $170.4
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 1,056 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 $177.4 million for the
nine months ended September 30, 2016 as compared to the $198.7
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 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.
Net Loss of Navios Holdings was $61.4 million and $73.6 million
for the nine months ended September 30, 2016 and 2015,
respectively. Net Loss was affected by the items described in
the table above. Excluding these items, Adjusted Net Loss of Navios
Holdings for the nine months ended September 30, 2016 was $56.3
million as compared to $71.8 million for the same period of 2015.
The $15.5 million decrease in Adjusted Net Loss was mainly due to
(i) an increase in Adjusted EBITDA of $16.4 million; (ii) a
decrease in interest expense and finance cost, net of $2.1 million;
and (iii) a decrease in depreciation and amortization of $0.6
million. This overall decrease of $19.1 million was partially
mitigated by (i) an increase in income tax expense of $2.7 million;
(ii) an increase of $0.6 million in amortization for deferred
drydock and special survey costs; and (iii) an increase of $0.3
million in share-based compensation expense.
Net income of Navios Logistics was $15.8 million for the nine
month period ended September 30, 2016 as compared to $20.9 million
for the same period in 2015.
Adjusted EBITDA of Navios Holdings for the nine month period
ended September 30, 2016 increased by $16.4 million to $114.9
million as compared to $98.5 million for the same period of 2015.
The $16.4 million increase in Adjusted EBITDA was primarily due to
(i) a $66.9 million decrease in time charter, voyage and logistics
business expenses; (ii) a $15.5 million increase in other income,
net; (iii) a $3.0 million decrease in general and administrative
expenses (excluding share-based compensation expenses); a $2.9
million decrease in direct vessel expenses (excluding the
amortization of deferred drydock and special survey costs); and a
$1.9 million decrease in net income attributable to the
noncontrolling interest. This overall increase of $90.2
million was partially mitigated by (i) a $48.8 million decrease in
revenue; and (ii) a $25.0 million decrease in equity in net
earnings from affiliated companies.
EBITDA of Navios Logistics was $60.9 million for the nine month
period ended September 30, 2016 as compared to $64.5 million for
the same period in 2015.
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 nine month periods ended September 30, 2016 and
2015, respectively.
|
|
|
Three Month |
|
Three Month |
|
Nine Month |
|
Nine Month |
|
|
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
| Available Days (1) |
|
|
5,215 |
|
|
|
6,245 |
|
|
|
16,373 |
|
|
|
17,429 |
|
| Operating Days (2) |
|
|
5,206 |
|
|
|
6,122 |
|
|
|
16,238 |
|
|
|
17,188 |
|
| Fleet Utilization (3) |
|
|
99.8 |
% |
|
|
98.0 |
% |
|
|
99.2 |
% |
|
|
98.6 |
% |
| Equivalent Vessels
(4) |
|
|
57 |
|
|
|
68 |
|
|
|
60 |
|
|
|
64 |
|
| TCE (5) |
|
$ |
9,010 |
|
|
$ |
8,570 |
|
|
$ |
8,102 |
|
|
$ |
7,776 |
|
| |
| (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, November 22, 2016, at 8:30 am ET, at which time Navios
Holdings' senior management will provide highlights and commentary
on earnings results for the third quarter and nine months ended
September 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: Tuesday, November 22, 2016, at 8:30 am ET Call
Title: Navios Holdings Q3 2016 Financial Results Conference Call US
Dial In: +1.877.480.3873 International Dial In: +1.404.665.9927
Conference ID: 9000 2820
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: 9000 2820
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 Maritime Partners L.P. (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 September 30, 2016 |
|
|
Three Month Period
Ended September 30, 2015 |
|
|
Nine Month Period
Ended September 30, 2016 |
|
|
Nine Month Period
Ended September 30, 2015 |
|
| |
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
| Revenue |
|
$ |
113,087 |
|
|
$ |
130,955 |
|
|
$ |
320,307 |
|
|
$ |
369,074 |
|
| Administrative fee revenue
from affiliates |
|
|
5,472 |
|
|
|
4,142 |
|
|
|
16,417 |
|
|
|
11,946 |
|
| Time charter, voyage and
logistics business expenses |
|
|
(41,846 |
) |
|
|
(63,386 |
) |
|
|
(124,322 |
) |
|
|
(191,176 |
) |
| Direct vessel
expenses(1) |
|
|
(33,269 |
) |
|
|
(33,751 |
) |
|
|
(98,028 |
) |
|
|
(100,316 |
) |
| General and administrative
expenses incurred on behalf of affiliates |
|
|
(5,472 |
) |
|
|
(4,142 |
) |
|
|
(16,417 |
) |
|
|
(11,946 |
) |
| General and administrative
expenses(2) |
|
|
(6,182 |
) |
|
|
(6,303 |
) |
|
|
(19,012 |
) |
|
|
(21,782 |
) |
| Depreciation and
amortization |
|
|
(41,432 |
) |
|
|
(27,356 |
) |
|
|
(88,391 |
) |
|
|
(76,040 |
) |
| Interest expense and
finance cost, net |
|
|
(26,809 |
) |
|
|
(27,534 |
) |
|
|
(81,257 |
) |
|
|
(83,410 |
) |
| Gain on bond
extinguishment |
|
|
15,956 |
|
|
|
— |
|
|
|
15,956 |
|
|
|
— |
|
| Other (expense)/income,
net |
|
|
(3,844 |
) |
|
|
(6,709 |
) |
|
|
5,290 |
|
|
|
(11,944 |
) |
| Loss before equity
in net earnings of affiliated companies |
|
|
(24,339 |
) |
|
|
(34,084 |
) |
|
|
(69,457 |
) |
|
|
(115,594 |
) |
| Equity in net
(loss)/earnings of affiliated companies |
|
|
(735 |
) |
|
|
16,828 |
|
|
|
15,641 |
|
|
|
48,708 |
|
| Loss before
taxes |
|
$ |
(25,074 |
) |
|
$ |
(17,256 |
) |
|
$ |
(53,816 |
) |
|
$ |
(66,886 |
) |
| Income tax (expense)/
benefit |
|
|
(1,413 |
) |
|
|
(955 |
) |
|
|
(1,837 |
) |
|
|
888 |
|
| Net
loss |
|
|
(26,487 |
) |
|
|
(18,211 |
) |
|
|
(55,653 |
) |
|
|
(65,998 |
) |
| Less: Net income
attributable to the noncontrolling interest |
|
|
(1,016 |
) |
|
|
(3,850 |
) |
|
|
(5,731 |
) |
|
|
(7,554 |
) |
| Net loss
attributable to Navios Holdings common
stockholders |
|
$ |
(27,503 |
) |
|
$ |
(22,061 |
) |
|
$ |
(61,384 |
) |
|
$ |
(73,552 |
) |
| Loss attributable
to Navios Holdings common stockholders, basic and
diluted |
|
$ |
(31,490 |
) |
|
$ |
(26,115 |
) |
|
$ |
(73,312 |
) |
|
$ |
(85,772 |
) |
| Basic and diluted
net losses per share attributable to Navios Holdings common
stockholders |
|
$ |
(0.30 |
) |
|
$ |
(0.25 |
) |
|
$ |
(0.69 |
) |
|
$ |
(0.81 |
) |
| Weighted average
number of shares, basic and diluted |
|
|
106,423,653 |
|
|
|
106,409,052 |
|
|
|
106,157,410 |
|
|
|
105,641,650 |
|
| |
| (1) Includes expenses of Navios Logistics of $21.0
million and $21.4 million for the three months ended September 30,
2016 and 2015, respectively and $59.1 million and $62.3 million for
the nine months ended September 30, 2016 and 2015,
respectively. |
| (2) Includes expenses of Navios Logistics of $3.4 million
and $3.1 million for the three months ended September 30, 2016 and
2015, respectively and $10.3 million and $10.6 million for the nine
months ended September 30, 2016 and 2015, respectively. |
| NAVIOS MARITIME
HOLDINGS INC. |
| Other Financial
Data |
| |
| |
|
September
30, 2016 |
|
|
December 31, 2015 |
|
| |
|
(unaudited) |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
| Cash and cash equivalents,
including restricted cash |
|
$ |
163,326 |
|
|
$ |
176,892 |
|
| Other current assets |
|
|
132,844 |
|
|
|
126,067 |
|
| Deposits for vessels, port
terminals and other fixed assets |
|
|
116,424 |
|
|
|
73,949 |
|
| Vessels, port terminal and
other fixed assets, net |
|
|
1,844,143 |
|
|
|
1,823,961 |
|
| Other non-current
assets |
|
|
456,048 |
|
|
|
447,151 |
|
| Goodwill and other
intangibles |
|
|
288,876 |
|
|
|
310,793 |
|
| Total
assets |
|
$ |
3,001,661 |
|
|
$ |
2,958,813 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities,
excluding current portion of long-term debt, net |
|
|
224,539 |
|
|
|
209,912 |
|
| Senior and ship mortgage
notes, net |
|
|
1,322,218 |
|
|
|
1,350,941 |
|
| Long-term debt, including
current portion of long term debt, net |
|
|
276,407 |
|
|
|
230,367 |
|
| Other non-current
liabilities |
|
|
122,042 |
|
|
|
57,041 |
|
| Total stockholders’
equity |
|
|
1,056,455 |
|
|
|
1,110,552 |
|
| Total liabilities
and stockholders’ equity |
|
$ |
3,001,661 |
|
|
$ |
2,958,813 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
Nine MonthPeriod EndedSeptember
30,2016 |
|
|
Nine MonthPeriod EndedSeptember
30,2015 |
|
| |
|
(unaudited) |
|
|
(unaudited) |
|
| Net cash provided by
operating activities |
|
$ |
42,277 |
|
|
$ |
22,378 |
|
| Net cash used in
investing activities |
|
$ |
(129,409 |
) |
|
$ |
(27,624 |
) |
| Net cash provided
by/(used in) financing activities |
|
$ |
82,275 |
|
|
$ |
(68,950 |
) |
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic
Loss per Share are “non-U.S. GAAP financial measures” and should
not be used in isolation or considered substitutes for net income/
(loss), cash flow from operating activities and other operations or
cash flow statement data prepared in accordance with generally
accepted accounting principles in the United States.
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. Adjusted EBITDA represents EBITDA,
excluding certain items as described under “Earnings Highlights”.
Adjusted Loss and Adjusted Basic Loss per Share, represent Net Loss
and Basic Loss per Share, excluding certain items as described
under “Earnings Highlights”. We use EBITDA and Adjusted EBITDA as
liquidity measures and reconcile EBITDA and Adjusted 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 gains/(losses) on bond and debt extinguishment, (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) loss on sale
and reclassification to earnings of available–for-sale securities
and impairment charges. Navios Holdings believes that EBITDA and
Adjusted EBITDA are 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 and Adjusted EBITDA are
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 and Adjusted EBITDA are presented to provide additional
information with respect to the ability of Navios Holdings to
satisfy its respective obligations, including debt service, capital
expenditures, working capital requirements and pay dividends. While
EBITDA and Adjusted EBITDA are frequently used as measures of
operating results and the ability to meet debt service
requirements, the definitions of EBITDA and Adjusted EBITDA used
here may not be comparable to those used by other companies due to
differences in methods of calculation.
EBITDA and Adjusted EBITDA have 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 and
Adjusted EBITDA do not reflect changes in, or cash requirements
for, working capital needs; (ii) EBITDA and Adjusted EBITDA do 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 and Adjusted EBITDA do not reflect any cash
requirements for such capital expenditures. Because of these
limitations, among others, EBITDA and Adjusted EBITDA should not be
considered as a principal indicator of Navios Holdings’
performance. Furthermore, our calculation of EBITDA and Adjusted
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 and
Adjusted EBITDA of Navios Holdings (including Navios Logistics) and
EBITDA of Navios Logistics on a stand-alone basis:
|
Navios Holdings Reconciliation of EBITDA and Adjusted
EBITDA to Cash from Operations |
|
|
| |
|
September 30, |
|
September 30, |
|
Three Months Ended |
|
2016 |
|
2015 |
| (in
thousands of U.S. dollars) |
|
(unaudited) |
|
(unaudited) |
| |
|
|
|
|
|
|
|
| |
Net cash provided by
operating activities |
|
$ |
2,140 |
|
|
$ |
20,639 |
|
| |
Net increase in operating
assets |
|
|
8,247 |
|
|
|
30,837 |
|
| |
Net (increase) in
operating liabilities |
|
|
(3,381 |
) |
|
|
(45,771 |
) |
| |
Net interest cost |
|
|
26,809 |
|
|
|
27,534 |
|
| |
Deferred finance
charges |
|
|
(1,359 |
) |
|
|
(1,135 |
) |
| |
Provision for losses on
accounts receivable |
|
|
(453 |
) |
|
|
(95 |
) |
| |
Equity in affiliates, net
of dividends received |
|
|
(4,857 |
) |
|
|
7,512 |
|
| |
Payments for drydock and
special survey costs |
|
|
4,303 |
|
|
|
3,867 |
|
| |
Noncontrolling
interest |
|
|
(1,016 |
) |
|
|
(3,850 |
) |
| |
Loss on sale and
reclassification to earnings of available for sale securities |
|
|
— |
|
|
|
(1,783 |
) |
| |
Gain on bond
extinguishment |
|
|
15,956 |
|
|
|
— |
|
| |
EBITDA |
|
$ |
46,389 |
|
|
$ |
37,755 |
|
| |
Gain on bond
extinguishment |
|
|
(15,956 |
) |
|
|
— |
|
| |
Other items from
affiliates (share in Navios Partner's impairment loss) |
|
|
8,032 |
|
|
|
— |
|
| |
Reclassification to
earnings of available for sale securities |
|
|
— |
|
|
|
1,783 |
|
| |
Adjusted
EBITDA |
|
$ |
38,465 |
|
|
$ |
39,538 |
|
|
Navios Logistics EBITDA Reconciliation to Net
Income |
|
|
| |
|
September 30, |
|
|
September 30, |
|
|
Three Months Ended |
|
2016 |
|
|
2015 |
|
| (in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
| |
|
|
|
|
|
|
|
|
|
| |
Net income |
|
$ |
2,807 |
|
|
$ |
10,642 |
|
| |
Depreciation and
amortization |
|
|
7,679 |
|
|
|
6,486 |
|
| |
Amortization of deferred
drydock and special survey costs
|
|
|
1,680 |
|
|
|
1,656 |
|
| |
Interest expense and
finance cost, net |
|
|
5,638 |
|
|
|
6,521 |
|
| |
Income tax expense |
|
|
1,341 |
|
|
|
880 |
|
| |
EBITDA |
|
$ |
19,145 |
|
|
$ |
26,185 |
|
|
Navios Holdings Reconciliation of EBITDA and Adjusted
EBITDA to Cash from Operations |
|
|
| |
|
September
30, |
|
|
September
30, |
|
|
Nine Months Ended |
|
2016 |
|
|
2015 |
|
| (in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
| |
|
|
|
|
|
|
|
|
|
| |
Net cash provided by
operating activities |
|
$ |
42,277 |
|
|
|
$ |
22,378 |
|
|
| |
Net decrease/ (increase)
in operating assets |
|
|
20,023 |
|
|
|
|
(28,671 |
) |
|
| |
Net (increase) in
operating liabilities |
|
|
(36,537 |
) |
|
|
|
(9,142 |
) |
|
| |
Net interest cost |
|
|
81,257 |
|
|
|
|
83,410 |
|
|
| |
Deferred finance
charges |
|
|
(4,054 |
) |
|
|
|
(3,290 |
) |
|
| |
Provision for losses on
accounts receivable |
|
|
(602 |
) |
|
|
|
(104 |
) |
|
| |
Equity in affiliates, net
of dividends received |
|
|
3,248 |
|
|
|
|
21,674 |
|
|
| |
Payments for drydock and
special survey costs |
|
|
7,375 |
|
|
|
|
19,783 |
|
|
| |
Noncontrolling
interest |
|
|
(5,731 |
) |
|
|
|
(7,554 |
) |
|
| |
Loss on sale and
reclassification to earnings of available for sale securities |
|
|
(345 |
) |
|
|
|
(1,783 |
) |
|
| |
Gain on bond
extinguishment |
|
|
15,956 |
|
|
|
|
— |
|
|
|
|
EBITDA |
|
$ |
122,867 |
|
|
|
$ |
96,701 |
|
|
|
|
Gain on bond
extinguishment |
|
|
(15,956 |
) |
|
|
|
— |
|
|
|
|
Other items from
affiliates (share in Navios Partner's impairment loss) |
|
|
8,032 |
|
|
|
|
— |
|
|
|
|
Reclassification to
earnings of available for sale securities |
|
|
— |
|
|
|
|
1,783 |
|
|
|
|
Adjusted
EBITDA |
|
$ |
114,943 |
|
|
|
$ |
98,484 |
|
|
|
Navios Logistics EBITDA Reconciliation to Net
Income |
|
|
| |
|
September 30, |
|
|
September 30, |
|
|
Nine Months Ended |
|
2016 |
|
|
2015 |
|
| (in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
| |
|
|
|
|
|
|
|
|
|
| |
Net income |
|
$ |
15,843 |
|
|
$ |
20,880 |
|
|
| |
Depreciation and
amortization |
|
|
20,740 |
|
|
|
19,544 |
|
|
| |
Amortization of deferred
drydock and special survey costs
|
|
|
5,065 |
|
|
|
5,119 |
|
|
| |
Interest expense and
finance cost, net |
|
|
17,671 |
|
|
|
20,069 |
|
|
| |
Income tax
expense/(benefit) |
|
|
1,623 |
|
|
|
(1,105 |
) |
|
| |
EBITDA |
|
$ |
60,942 |
|
|
$ |
64,507 |
|
|
|
Core Fleet - Owned Vessels |
| |
|
|
|
|
|
EXHIBIT II |
| |
|
|
|
|
|
|
|
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 |
| N Amalthia |
|
Panamax |
|
2006 |
|
75,318 |
| N Bonanza |
|
Panamax |
|
2006 |
|
76,596 |
| Navios Galileo |
|
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 |
|
Core Fleet - 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 |
| Mercury Ocean |
|
Ultra
Handymax |
|
2008 |
|
53,452 |
|
No |
| 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 Amber |
|
Panamax |
|
2015 |
|
80,994 |
|
Yes |
| Navios Sky |
|
Panamax |
|
2015 |
|
82,056 |
|
Yes |
| Navios Coral |
|
Panamax |
|
2016 |
|
84,904 |
|
Yes |
| Navios Koyo |
|
Capesize |
|
2011 |
|
181,415 |
|
Yes |
| Dream Canary |
|
Capesize |
|
2015 |
|
180,528 |
|
Yes |
| Dream Coral |
|
Capesize |
|
2015 |
|
181,249 |
|
Yes |
| Navios Felix |
|
Capesize |
|
2016 |
|
181,221 |
|
Yes |
| |
|
|
|
|
|
|
|
|
|
Core Fleet - Long-term Chartered-in Fleet to be
Delivered |
| |
|
|
|
Vessel |
|
Delivery |
|
|
Deadweight |
Purchase |
|
Vessels |
|
Type |
|
Date |
|
|
(in metric tons) |
Option |
| Kouju Lily |
|
Handymax |
|
Q4
2016 |
|
|
58,872 |
No |
| Osmarine |
|
Panamax |
|
Q1
2017 |
|
|
76,000 |
No |
| KM Imabari |
|
Panamax |
|
Q1
2017 |
|
|
76,000 |
No |
| Navios Citrine |
|
Panamax |
|
Q1
2017 |
|
|
81,000 |
Yes |
| Navios Dolphin |
|
Panamax |
|
Q1
2017 |
|
|
81,000 |
Yes |
| Equator Prosper |
|
Capesize |
|
Q1
2017 |
|
|
170,000 |
No |
| Pacific Explorer |
|
Capesize |
|
Q1
2017 |
|
|
177,000 |
No |
| |
| Kleimar Controlled Fleet -
Long-term Chartered-in Fleet in Operation |
| |
|
|
|
|
|
|
|
|
| Vessel Name |
|
Vessel
Type |
|
Year
Built |
|
Deadweight (in metric
tons) |
|
Purchase
Option(1) |
| King Ore |
|
Capesize |
|
2010 |
|
176,800 |
|
Yes |
| Navios Obeliks |
|
Capesize |
|
2012 |
|
181,415 |
|
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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