• $95.3 million Revenue for Q1
2017• $28.6 million net cash from operating
activities for Q1 2017• $17.5 million
Adjusted EBITDA for Q1 2017• $138.2 million
of cash as of March 31, 2017• Positioned to
capture market recovery
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 first
quarter ended March 31, 2017.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
"I am pleased with our results for the first quarter, in which we
recorded revenue of $95.3 million, EBITDA of $17.5 million and net
cash from operating activities of $28.6 million. We also ended the
quarter with $138.2 million in cash, while having no committed
growth capex or any significant debt maturities until 2019. In a
recovering market, we are positioned to enjoy substantial free cash
flow from an increase in charter rates."
Angeliki Frangou continued, "Navios Holdings is a diversified
company that directly controls 66 modern dry bulk vessels and
manages almost 200 vessels in its broader fleet. The fleet size
provides purchasing power and cost savings opportunities. Our
operating leverage allows our costs to be substantially below the
average of the listed peers, savings that accrue directly to our
stakeholders. The strength of Navios Holdings' sponsorship allowed
Navios Partners to grow significantly by raising $100 million in
the first quarter and entering into an agreement to acquire the RMT
fleet. In addition, it allowed Navios Containers to raise $75
million of gross equity proceeds in its initial capitalization.
Navios Holdings also agreed to acquire control of the FSL Trust
which owns 22 vessels (five containers and 17 tankers), subject to
various conditions."
HIGHLIGHTS -- RECENT DEVELOPMENTS
Navios Maritime Containers Inc. (“Navios
Containers”)
In April 2017, Navios Maritime Partners L.P.
(“Navios Partners”) agreed to acquire the entire container fleet
(the “Fleet”) of Rickmers Maritime Trust Pte. (the “Trust”). The
Fleet consists of 14 Container vessels. The acquisition of the
first five vessels, each with a capacity of 4,250 TEU, is expected
in May 2017.
Navios Containers, a newly formed Marshall
Islands company, agreed to sell an aggregate of 15.0 million of its
shares to Navios Partners, Navios Holdings and third party
investors for aggregate consideration worth approximately $75.0
million.
Navios Containers intends to use the proceeds to
acquire the Fleet that Navios Partners previously agreed to
purchase from the Trust as well as for further vessel acquisitions,
working capital and general corporate purposes. The offering is
expected to close on or about June 1, 2017.
Navios Partners will invest $30 million and
receive 40% of the equity, and Navios Holdings will invest $5
million and receive 6.7% of the equity of Navios Containers. Each
of Navios Partners and Navios Holdings will also receive warrants,
with a five-year term, for 6.8% and 1.7% of the equity,
respectively.
The acquisition is subject to a number of
conditions, and no assurance can be provided that the acquisition
will close at all or in part. Navios Containers also announced that
it intends to file an application to register on the Norwegian
Over-The-Counter market (N-OTC). Navios Containers expects to be
registered on or about June 1, 2017.
First Ship Lease Trust (“FSL Trust”)
Navios Holdings executed, for itself and/or for
its affiliates (“Navios”), an exclusivity agreement and term sheet
to purchase directly or indirectly, 100% of FSL Asset
Management Pte. Ltd. (“FSL Asset”) and not less than a total
of 50.1% of FSL Trust from an existing shareholder
and FSL Trust. FSL Trust is listed on the Mainboard
of the Singapore Exchange Securities Trading Limited.
FSL Trust is a Singapore-based
business trust which owns a diversified fleet of 22 modern and
high-quality oceangoing vessels (the “FSL Fleet”). The Fleet
includes 12 product tankers, three chemical tankers, two crude oil
tankers and five container vessels.
The acquisition is subject to a number of
conditions, including (1) the satisfactory restructuring of the
existing mortgage debt and other loan facilities of FSL Trust,
(2) waiver by the Securities Industry Council of any
obligation for Navios to make a mandatory take-over offer for all
the units in FSL Trust (the “Whitewash Waiver”) and (3)
approval of FSL Trust’s independent unitholders of the Whitewash
Waiver. No assurance can be provided that these conditions
will be satisfied and that any acquisition will be concluded at all
or in part.
The parties have agreed to negotiate exclusively
with each other and will seek to execute definitive agreements by
September 30, 2017.
Asset Sales
Navios Holdings agreed to sell two Handymax
vessels, the Navios Ionian and the Navios Horizon for $11.8 million
net proceeds. These vessels are collateral to the Company’s 7.375%
First Priority Ship Mortgage Notes due in 2022.
Debt Refinancing
Navios Holdings refinanced one of its existing
debt facilities securing a 2010 built Capesize vessel with a $15.3
million new bank loan. The new loan has a term of 4.25 years and an
amortization profile of 10 years.
Navios South American Logistics Inc. (“Navios
Logistics”)
In May 2017, Navios Logistics acquired two
product tankers, Ferni H and San San H for $11.2 million which we
previously operated under capital lease with an obligation to
purchase in 2020. The remaining capital lease obligation was
terminated after the acquisition of the vessels. The acquisition of
the two product tankers was financed with a $14.0 million five year
term loan.
Fleet update
Navios Holdings controls a fleet of 66 operating vessels
totaling 6.7 million dwt, of which 40 are owned and 26 are
chartered-in under long-term charters (collectively, the "Core
Fleet"). The fleet consists of 21 Capesize, 23 Panamax, 20 Ultra
Handymax and two Handysize vessels and the current average age of
operating fleet is 8.1 years.
As of May 19, 2017, Navios Holdings has chartered-out 33.1% of
available days for the remaining nine months of 2017 (excluding
index and profit sharing days). The average contracted daily
charter-in rate for the long-term charter-in vessels for the
remaining nine months of 2017 is $12,471.
The above figures do not include the fleet of 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
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 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.
First Quarter 2017 and 2016 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The first quarter 2017 and 2016 information presented below was
derived from the unaudited condensed consolidated financial
statements for the respective periods.
|
|
Three Month Period Ended |
|
Three Month Period Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
2017 |
|
2016 |
|
|
|
(unaudited) |
|
(unaudited) |
|
Revenue |
|
$ |
95,346 |
|
|
$ |
101,487 |
|
|
Net Loss |
|
$ |
(48,719) |
|
|
$ |
(7,465) |
|
|
Adjusted Net Loss |
|
$ |
(39,621) |
|
(1) |
|
$ |
(29,650) |
|
(2) |
|
Net cash provided by
operating activities |
|
$ |
28,592 |
|
|
$ |
28,940 |
|
|
EBITDA |
|
$ |
8,434 |
|
|
$ |
45,424 |
|
|
Adjusted EBITDA |
|
$ |
17,532 |
|
(1) |
|
$ |
30,553 |
|
(2) |
|
Basic Loss per
Share |
|
$ |
(0.45) |
|
|
$ |
(0.11) |
|
|
Adjusted Basic Loss per
Share |
|
$ |
(0.37) |
|
(1) |
|
$ |
(0.32) |
|
(2) |
|
(1) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss
per Share for the three months ended March 31, 2017 exclude a $9.1
million impairment loss relating to the sale of Navios Ionian.
(2) Adjusted EBITDA for the three months ended March 31,
2016 excludes $14.9 million compensation from the early redelivery
of a vessel from its charterer. Adjusted Net Loss and Adjusted
Basic Loss per Share for the three months ended March 31, 2016
exclude the compensation described above and a $7.3 million income
from the write-off of an intangible liability due to the early
redelivery of the same vessel.
Revenue from dry bulk vessel operations for the three months
ended March 31, 2017, was $51.5 million as compared to $46.3
million for the same period during 2016. The increase in dry bulk
revenue was mainly attributable to (i) the improved freight market
and the increase in the time charter equivalent rate ("TCE") per
day by 12.1% to $7,857 per day in the first quarter of 2017, as
compared to $7,008 per day in the same period of 2016 and (ii) the
improved utilization of the fleet of 99.8% in the first quarter of
2017, as compared to 98.4% in the same period of 2016. This
increase was partially mitigated by a net decrease in available
days of our fleet by 157 days.
Revenue from the logistics business was $43.8 million for the
three months ended March 31, 2017 as compared to $55.2 million for
the same period during 2016. The decrease was mainly attributable
to a decrease of $7.6 million in the barge business due to less
volume of cargo transported during the period, a decrease of $3.4
million in the cabotage business mainly due to lower utilization of
our fleet and a decrease of $0.4 million relating to the port
operations.
Net Loss of Navios Holdings was $48.7 million for the three
months ended March 31, 2017, as compared to $7.5 million for the
same period during 2016. Net loss was affected by items described
in the table above. Excluding these items, Adjusted Net Loss of
Navios Holdings for the three months ended March 31, 2017 was $39.6
million as compared to $29.7 million for the same period of 2016.
The $9.9 million increase in Adjusted Net Loss was mainly due to
(i) a $13.1 million decrease in Adjusted EBITDA; and (ii) a $0.2
million increase in share-based compensation expense. This overall
increase in Net Loss was partially mitigated by (i) a $1.6 million
decrease in depreciation and amortization; (ii) a $1.4 million
decrease in income tax expense; and (iii) a $0.4 million decrease
in interest expense and finance cost, net.
Net Loss of Navios Logistics was $3.0 million for the three
month period ended March 31, 2017, as compared to net income of
$5.7 million for the same period in 2016.
Adjusted EBITDA of Navios Holdings for the three months ended
March 31, 2017, decreased by $13.1 million to $17.5 million as
compared to $30.6 million for the same period of 2016. The decrease
in Adjusted EBITDA was primarily due to (i) a $7.9 million decrease
in equity in net earnings from affiliated companies; (ii) a $6.2
million decrease in revenue; and (iii) a $4.3 million increase in
time charter, voyage and logistics business expenses. This overall
decrease was partially mitigated by (i) a $3.2 million decrease in
net income attributable to the noncontrolling interest; (ii) a $1.8
million decrease in other expense, net; (iii) a $0.2 million
decrease in general and administrative expenses (excluding
share-based compensation expenses); and (iv) a $0.1 million
decrease in direct vessel expenses (excluding the amortization of
deferred drydock and special survey costs).
EBITDA of Navios Logistics was $10.1 million for the three month
period ended March 31, 2017 as compared to $21.1 million for the
same period in 2016.
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 first quarter ended March 31, 2017 and 2016,
respectively.
|
|
Three Month |
|
Three Month |
|
|
Period Ended |
|
Period Ended |
|
|
March 31, |
|
March 31, |
|
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
(Unaudited) |
Available Days (1) |
|
5,803 |
|
|
5,960 |
|
Operating Days (2) |
|
5,791 |
|
|
5,861 |
|
Fleet Utilization
(3) |
|
99.8% |
|
|
98.4% |
|
Equivalent Vessels
(4) |
|
64 |
|
|
65 |
|
TCE (5) |
$ |
7,857 |
|
$ |
7,008 |
|
(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) |
|
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, May 24, 2017, at 8:30 am ET, at which time Navios
Holdings' senior management will provide highlights and commentary
on earnings results for the first quarter ended March 31, 2017.
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: Wednesday, May 24, 2017, at 8:30 am ET Call
Title: Navios Holdings Q1 2017 Financial Results Conference Call US
Dial In: +1.877.480.3873 International Dial In: +1.404.665.9927
Conference ID: 20913573
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: 20913573
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 bulk 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.
About Navios Maritime Containers Inc.
Navios Maritime Containers Inc. is a growth vehicle dedicated to
the container sector of the maritime industry. For more
information, please visit its website at
www.navios-containers.com.
Forward Looking Statements - Safe Harbor
This press release and our earnings call contain and will
contain 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 cash flow generation for the remainder of 2017,
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, the value of our publicly
traded subsidiaries, 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 |
|
|
Three Month |
|
|
|
|
Period Ended |
|
|
Period Ended |
|
|
|
|
March 31, 2017 |
|
|
March 31, 2016 |
|
|
|
|
(unaudited) |
|
|
(unaudited) |
Revenue |
|
|
|
$ |
95,346 |
|
|
$ |
101,487 |
|
Administrative fee
revenue from affiliates |
|
|
|
|
5,298 |
|
|
|
5,482 |
|
Time charter, voyage
and logistics business expenses |
|
|
|
|
(50,726 |
) |
|
|
(46,381 |
) |
Direct vessel
expenses(1) |
|
|
|
|
(30,044 |
) |
|
|
(30,074 |
) |
General and
administrative expenses incurred on behalf of affiliates |
|
|
|
|
(5,298 |
) |
|
|
(5,482 |
) |
General and
administrative expenses(2) |
|
|
|
|
(6,384 |
) |
|
|
(6,438 |
) |
Depreciation and
amortization |
|
|
|
|
(25,623 |
) |
|
|
(19,827 |
) |
Interest expense and
finance cost, net |
|
|
|
|
(27,422 |
) |
|
|
(27,750 |
) |
Impairment loss on sale
of vessel |
|
|
|
|
(9,098 |
) |
|
|
— |
|
Other (expense)/
income, net |
|
|
|
|
(1,355 |
) |
|
|
11,664 |
|
Loss before
equity in net earnings of affiliated companies |
|
|
|
|
(55,306 |
) |
|
|
(17,319 |
) |
Equity in net earnings
of affiliated companies |
|
|
|
|
5,082 |
|
|
|
12,952 |
|
Loss before
taxes |
|
|
|
$ |
(50,224 |
) |
|
$ |
(4,367 |
) |
Income tax benefit/
(expense) |
|
|
|
|
417 |
|
|
|
(1,045 |
) |
Net
loss |
|
|
|
|
(49,807 |
) |
|
|
(5,412 |
) |
Less: Net loss/
(income) attributable to the noncontrolling interest |
|
|
|
|
1,088 |
|
|
|
(2,053 |
) |
Net loss
attributable to Navios Holdings common stockholders |
|
|
|
$ |
(48,719 |
) |
|
$ |
(7,465 |
) |
Loss
attributable to Navios Holdings common stockholders, basic and
diluted |
|
|
|
$ |
(51,363 |
) |
|
$ |
(11,437 |
) |
Basic and
diluted loss per share attributable to Navios Holdings common
stockholders |
|
|
|
$ |
(0.45 |
) |
|
$ |
(0.11 |
) |
Weighted
average number of shares, basic and diluted |
|
|
|
|
115,168,874 |
|
|
|
106,036,603 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes expenses of Navios Logistics of $17.5 million and
$16.7 million for the three months ended March 31, 2017 and 2016,
respectively. (2) Includes expenses of Navios Logistics of $3.5
million and $3.3 million for the three months ended March 31, 2017
and 2016, respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NAVIOS MARITIME HOLDINGS INC. |
|
|
Other Financial Data |
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
December 31, |
|
|
|
2017 |
|
|
2016 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Cash and
cash equivalents, including restricted cash |
$ |
138,190 |
|
|
$ |
141,378 |
|
|
Other
current assets |
|
115,832 |
|
|
|
131,762 |
|
|
Deposits
for vessels, port terminals and other fixed assets |
|
153,314 |
|
|
|
136,891 |
|
|
Vessels,
port terminal and other fixed assets, net |
|
1,790,395 |
|
|
|
1,821,101 |
|
|
Other
noncurrent assets |
|
262,382 |
|
|
|
234,612 |
|
|
Goodwill
and other intangibles |
|
285,431 |
|
|
|
287,151 |
|
|
Total assets |
$ |
2,745,544 |
|
|
$ |
2,752,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current
liabilities, including current portion of long-term debt, net |
|
236,836 |
|
|
|
251,783 |
|
|
Senior
and ship mortgage notes, net |
|
1,297,502 |
|
|
|
1,296,537 |
|
|
Long-term debt, net of current portion |
|
319,147 |
|
|
|
324,731 |
|
|
Other
noncurrent liabilities |
|
137,310 |
|
|
|
76,291 |
|
|
Total
stockholders’ equity |
|
754,749 |
|
|
|
803,553 |
|
|
Total liabilities and stockholders’ equity |
$ |
2,745,544 |
|
|
$ |
2,752,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Period Ended March 31,
2017 |
|
|
Three Month Period Ended March 31,
2016 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
Net cash provided by
operating activities |
$ |
28,592 |
|
|
$ |
28,940 |
|
|
Net cash used in
investing activities |
$ |
(22,977) |
|
|
$ |
(84,663) |
|
|
Net cash (used
in)/provided by financing activities |
$ |
(7,871) |
|
|
$ |
47,074 |
|
|
|
|
|
|
|
|
|
|
|
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, (ix) gain/ (loss) on
sale of assets/ subsidiaries, (x) unrealized (loss)/gain on
derivatives, and (xi) 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 and Adjusted EBITDA are 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
|
|
March
31, |
|
|
March 31, |
|
Three Months Ended |
|
2017 |
|
|
2016 |
|
(in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
$ |
28,592 |
|
|
|
$ |
28,940 |
|
|
|
Net (decrease)/
increase in operating assets |
|
|
(31,043) |
|
|
|
|
11,329 |
|
|
|
Net increase in
operating liabilities |
|
|
(14,690) |
|
|
|
|
(29,403) |
|
|
|
Net interest cost |
|
|
27,422 |
|
|
|
|
27,750 |
|
|
|
Deferred finance
charges |
|
|
(1,389) |
|
|
|
|
(1,284) |
|
|
|
Provision for losses on
accounts receivable |
|
|
(254) |
|
|
|
|
(106) |
|
|
|
Equity in affiliates,
net of dividends received |
|
|
821 |
|
|
|
|
8,888 |
|
|
|
Payments for drydock
and special survey |
|
|
5,955 |
|
|
|
|
1,363 |
|
|
|
Noncontrolling
interest |
|
|
1,088 |
|
|
|
|
(2,053) |
|
|
|
Other gain on
assets |
|
|
1,030 |
|
|
|
|
— |
|
|
|
Impairment loss on sale
of vessel |
|
|
(9,098) |
|
|
|
|
— |
|
|
|
EBITDA |
|
$ |
8,434 |
|
|
|
$ |
45,424 |
|
|
|
Impairment loss on sale
of vessel |
|
|
9,098 |
|
|
|
|
— |
|
|
|
Compensation from early
redelivery of a vessel from its charterer |
|
|
— |
|
|
|
|
(14,871) |
|
|
|
Adjusted
EBITDA |
|
$ |
17,532 |
|
|
|
$ |
30,553 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation to Net (loss)/
income
|
|
|
|
March 31, |
|
|
March 31, |
|
Three Months Ended |
|
2017 |
|
|
2016 |
|
(in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)/ income |
|
$ |
(3,007) |
|
|
|
$ |
5,674 |
|
|
Depreciation and
amortization |
|
|
6,090 |
|
|
|
|
6,674 |
|
|
Amortization of
deferred drydock and special survey costs |
|
|
1,698 |
|
|
|
|
1,598 |
|
|
Interest expense and
finance cost, net |
|
|
5,781 |
|
|
|
|
6,204 |
|
|
Income tax (benefit)/
expense |
|
|
(484) |
|
|
|
|
976 |
|
|
EBITDA |
|
$ |
10,078 |
|
|
|
$ |
21,126 |
|
|
|
|
|
|
|
|
|
|
|
|
EXHIBIT II |
Owned Vessels |
|
|
|
|
|
|
|
|
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metric tons) |
|
Navios
Serenity |
|
Handysize |
|
2011 |
|
34,690 |
|
Navios
Ionian (1) |
|
Ultra Handymax |
|
2000 |
|
52,067 |
|
Navios
Horizon (1) |
|
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
Amitie |
|
Panamax |
|
2005 |
|
75,395 |
|
Navios
Northern Star |
|
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 |
|
|
|
|
|
|
|
|
|
(1) Agreed to be sold. |
|
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 |
|
Kouju
Lily |
|
Ultra
Handymax |
|
2011 |
|
58,872 |
|
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 |
|
Osmarine |
|
Panamax |
|
2006 |
|
76,000 |
|
No |
|
Navios
Aldebaran |
|
Panamax |
|
2008 |
|
76,500 |
|
Yes |
|
KM
Imabari |
|
Panamax |
|
2009 |
|
76,619 |
|
No |
|
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 |
|
Navios
Coral |
|
Panamax |
|
2016 |
|
84,904 |
|
Yes |
|
Navios
Dolphin |
|
Panamax |
|
2017 |
|
81,630 |
|
Yes |
|
Navios
Citrine |
|
Panamax |
|
2017 |
|
81,626 |
|
Yes |
|
Equator
Prosper |
|
Capesize |
|
2000 |
|
170,000 |
|
No |
|
Pacific
Explorer |
|
Capesize |
|
2007 |
|
177,000 |
|
No |
|
King
Ore |
|
Capesize |
|
2010 |
|
176,800 |
|
Yes |
|
Navios
Koyo |
|
Capesize |
|
2011 |
|
181,415 |
|
Yes |
|
Navios
Obeliks |
|
Capesize |
|
2012 |
|
181,415 |
|
Yes |
|
Dream
Coral |
|
Capesize |
|
2015 |
|
181,249 |
|
Yes |
|
Dream
Canary |
|
Capesize |
|
2015 |
|
180,528 |
|
Yes |
|
Navios
Felix |
|
Capesize |
|
2016 |
|
181,221 |
|
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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