•$214.0 million revenue for H1 2017, $118.6 million for
Q2 2017
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, 2017.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
"We are delighted to report revenue and Adjusted EBITDA of $118.6
million and $31.3 million, respectively, for the second quarter of
2017. The dry bulk market continues to improve, and this
improvement is being reflected in our financial performance.
Compared to the second quarter of 2016, our Adjusted EBITDA from
core shipping operations has increased by more than 30%. While the
BDI has recovered significantly from the 2016 historical low, the
BDI still must appreciate by more than 80% to reach the twenty-year
average."
Angeliki Frangou continued, "I am also pleased to update you on
the status of the iron ore transshipment facility built by Navios
Logistics. During the second quarter, Vale unloaded
approximately 33 thousand metric tons of ore to create a bed for
the stockpile area and transshipped about 41 thousand metric tons
of iron ore, generating approximately $0.8 million of revenue. Vale
now has a stockpile of about 160 thousand metric tons of ore, and
we are expecting transshipments to continue ad hoc in the third
quarter. Beginning in the fourth quarter of this year, Vale’s
minimum transshipment obligation under the “take or pay” agreement
commences, and as a result, we can reasonably expect revenue of
about $10.3 million for the fourth quarter of 2017."
HIGHLIGHTS -- RECENT DEVELOPMENTS
Navios Maritime Containers Inc. (“Navios
Containers”)
On June 8, 2017, Navios Containers closed its private placement
of 10,057,645 shares at a subscription price of $5.00 per share,
resulting in gross proceeds of $50.3 million. Navios Holdings
invested $5.0 million and received 9.9% of the equity of Navios
Containers. Navios Holdings also received warrants, with a
five-year term, for 1.7% of the equity. Navios Containers
registered its shares on the Norwegian Over-The-Counter Market
(N-OTC) on June 12, 2017 under the ticker “NMCI”.
Navios South American Logistics Inc. ("Navios
Logistics")
During the second quarter of 2017, Vale International S.A.
(“Vale”) commenced using Navios Logistics’ newly constructed iron
ore terminal, generating revenue of approximately $0.8 million in
the quarter. Vale has since been building a stockpile of ore and we
expect transshipments to continue ad hoc in the third quarter.
Beginning in October 2017, Vale’s minimum transshipment obligation
under the “take or pay” agreement commences. As a result, we expect
revenue of about $10.3 million in the fourth quarter of this year
from the Vale port contract.
Asset Sales
On July 13, 2017, Navios Holdings completed the sale to an
unrelated third party of the Navios Horizon, a 2001 built Japanese
dry bulk vessel of 50,346 dwt, for a total net sale price of $6.5
million paid in cash. On June 16, 2017, Navios Holdings completed
the sale of the Navios Ionian.
Both the Navios Horizon and the Navios Ionian served as
collateral to the Company’s 7.375% First Priority Ship Mortgage
Notes due in 2022 and were replaced by Navios Galileo, a 2006-built
Panamax vessel.
Fleet update
Navios Holdings controls a fleet of 64 operating vessels
totaling 6.6 million dwt, of which 38 are owned and 26 are
chartered-in under long-term charters (collectively, the "Core
Fleet"). The fleet consists of 21 Capesize, 23 Panamax, 18 Ultra
Handymax and two Handysize vessels with an average age of 8.1
years.
As of August 11, 2017, Navios Holdings has chartered-out 43.3%
of available days for the remaining six 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 six months of 2017 is $12,492.
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.
Second Quarter 2017 and 2016 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The second quarter 2017 and 2016 information presented below was
derived from the unaudited condensed consolidated financial
statements for the respective periods.
|
|
Three Month PeriodEnded |
|
Three Month PeriodEnded |
|
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
2016 |
|
|
|
(unaudited) |
|
(unaudited) |
|
Revenue |
|
$ |
118,618 |
|
|
$ |
105,733 |
|
|
Net Loss |
|
$ |
(37,258 |
) |
|
$ |
(26,416 |
) |
|
Adjusted Net Loss |
|
$ |
(27,438 |
) |
(1) |
|
$ |
(26,416 |
) |
|
Net cash provided by
operating activities |
|
$ |
20,510 |
|
|
$ |
11,197 |
|
|
EBITDA |
|
$ |
21,518 |
|
|
$ |
31,054 |
|
|
Adjusted EBITDA |
|
$ |
31,338 |
|
(1) |
|
$ |
31,054 |
|
|
Basic Loss per
Share |
|
$ |
(0.34 |
) |
|
$ |
(0.29 |
) |
|
Adjusted Basic Loss per
Share |
|
$ |
(0.26 |
) |
(1) |
|
$ |
(0.29 |
) |
|
(1) |
|
Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss per Share for the three
months ended June 30, 2017 exclude (i) a $5.1 million impairment
loss relating to the sale of Navios Horizon and (ii) $4.7 million
non-cash impairment losses relating to our affiliates. Adjusted
Basic Loss per Share for the three months ended June 30, 2017 also
excludes a gain of $0.5 million following the completion of the
Series G and H Exchange Program. |
|
|
|
Revenue from dry bulk vessel operations for the three months
ended June 30, 2017 was $59.2 million, as compared to $47.0 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 time charter equivalent rate (“TCE”) per day by 8.5% to
$9,163 per day in the second quarter of 2017 as compared to $8,445
per day in the same period in 2016, and (ii) an increase in
available days of our fleet by 770 days, mainly due to an increase
in long-term charter-in fleet available days.
Revenue from the logistics business was $59.4 million for the
three months ended June 30, 2017, as compared to $58.7 million for
the same period during 2016. The increase was mainly attributable
to (i) an increase in the volume and tariffs in the dry port
terminal; and (ii) an increase in the Paraguayan liquid port’s
volume and price of products sold. The overall increase was
partially mitigated by (i) the expiration of certain iron ore
transportation contracts in the barge business; and (ii) a decrease
in operating days of the cabotage fleet.
Net Loss of Navios Holdings for the three months ended June 30,
2017 was $37.3 million as compared to $26.4 million for the same
period of 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 June 30, 2017 was $27.4 million
as compared to $26.4 million for the same period of 2016. The $1.0
million increase in Adjusted Net Loss was mainly due to (i) an
increase in interest expense and finance cost, net by $0.9 million;
(ii) an increase in amortization for deferred drydock and special
survey costs of $0.6 million; (iii) a decrease in income tax
benefit of $0.5 million; and (iv) an increase in share-based
compensation expense of $0.2 million. This overall decrease was
partially mitigated by (i) a decrease in depreciation and
amortization by $1.0 million; and (ii) an increase in Adjusted
EBITDA by $0.2 million.
Net Income of Navios Logistics was $4.4 million for the three
month period ended June 30, 2017, as compared to $7.4 million for
the same period in 2016.
Adjusted EBITDA of Navios Holdings for the three months ended
June 30, 2017 increased by $0.2 million to $31.3 million, as
compared to $31.1 million for the same period of 2016. The increase
in Adjusted EBITDA was primarily due to (i) a $12.9 million
increase in revenue; (ii) a $3.5 million decrease in direct vessel
expenses (excluding the amortization of deferred drydock and
special survey costs); (iii) a $1.1 million decrease in net income
attributable to the noncontrolling interest; (iv) a $1.7 million
gain relating to debt extinguishment; (v) a $1.0 million decrease
in other expense, net; and (vi) a $0.5 million decrease in general
and administrative expenses (excluding share-based compensation
expenses). This overall increase was partially offset by (i) a
$18.0 million increase in time charter, voyage and logistics
business expenses; and (ii) a $2.5 million decrease in equity in
net earnings from affiliated companies (excluding non-cash
impairment losses relating to our affiliates).
EBITDA of Navios Logistics was $19.3 million for the three month
period ended June 30, 2017, as compared to $20.7 million for the
same period in 2016.
First Half of 2017 and 2016 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, 2017 and
2016 presented below was derived from the unaudited condensed
consolidated financial statements for the respective periods.
|
|
Six Month PeriodEnded |
|
Six Month PeriodEnded |
|
|
|
June 30, |
|
June 30, |
|
|
|
2017 |
|
2016 |
|
|
|
(unaudited) |
|
(unaudited) |
|
Revenue |
|
$ |
213,964 |
|
|
$ |
207,220 |
|
|
Net Loss |
|
$ |
(85,977 |
) |
|
$ |
(33,881 |
) |
|
Adjusted Net Loss |
|
$ |
(67,059 |
) |
(1) |
|
$ |
(56,066 |
) |
(2) |
|
Net cash provided by
operating activities |
|
$ |
49,102 |
|
|
$ |
40,137 |
|
|
EBITDA |
|
$ |
29,952 |
|
|
$ |
76,478 |
|
|
Adjusted EBITDA |
|
$ |
48,870 |
|
(1) |
|
$ |
61,607 |
|
(2) |
|
Basic Loss per
Share |
|
$ |
(0.79 |
) |
|
$ |
(0.39 |
) |
|
Adjusted Basic Loss per
Share |
|
$ |
(0.63 |
) |
(1) |
|
$ |
(0.60 |
) |
(2) |
|
(1) |
|
Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss per Share for the six
months ended June 30, 2017 exclude (i) a $14.2 million impairment
loss relating to the sale of Navios Ionian and Navios Horizon and
(ii) $4.7 million non-cash impairment losses relating to our
affiliates. Adjusted Basic Loss per Share for the six months ended
June 30, 2017 also excludes a gain of $0.5 million following the
completion of the Series G and H Exchange Program. |
|
|
|
(2) |
|
Adjusted EBITDA for the
six months ended June 30, 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 six months ended
June 30, 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 six months ended
June 30, 2017 was $110.8 million as compared to $93.3 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 TCE per day by 11.0% to $8,519 per day in the first
half of 2017 as compared to $7,678 per day in the same period in
2016, and (ii) an increase in available days of our fleet by 613
days, mainly due to an increase in long-term charter-in fleet
available days.
Revenue from the logistics business was $103.2 million for the
six months ended June 30, 2017 as compared to $114.0 million for
the same period of 2016. The decrease was mainly attributable to
(i) the expiration of certain iron ore transportation contracts in
the barge business; and (ii) a decrease in operating days of the
cabotage fleet. The overall decrease was partially mitigated by (i)
an increase in the tariffs in the dry port terminal; and (ii) an
increase in the Paraguayan liquid port’s volume and price of
products sold.
Net Loss of Navios Holdings for the six months ended June 30,
2017 was $86.0 million, as compared to $33.9 million for the same
period of 2016. Net Loss was affected by items described in the
table above. Excluding these items, Adjusted Net Loss of Navios
Holdings for the six months ended June 30, 2017 was $67.1 million
as compared to $56.1 million for the same period of 2016. The $11.0
million increase in Adjusted Net Loss was mainly due to (i) a
decrease in Adjusted EBITDA of $12.7 million; (ii) an increase of
$0.8 million in amortization for deferred drydock and special
survey costs; (iii) an increase in interest expense and finance
cost, net of $0.6 million; and (iv) an increase of $0.4 million in
share-based compensation expense. This overall increase in Adjusted
Net Loss was partially mitigated by (i) a decrease in depreciation
and amortization of $2.6 million; and (ii) an increase in income
tax benefit of $0.9 million.
Net Income of Navios Logistics was $1.4 million for the six
month period ended June 30, 2017, as compared to $13.0 million for
the same period in 2016.
Adjusted EBITDA of Navios Holdings for the six months ended June
30, 2017, decreased by $12.7 million to $48.9 million as compared
to $61.6 million for the same period of 2016. The decrease in
Adjusted EBITDA was primarily due to (i) a $22.3 million increase
in time charter, voyage and logistics business expenses; and (ii) a
$10.4 million decrease in equity in net earnings from affiliated
companies (excluding non-cash impairment losses relating to our
affiliates). This overall decrease in Adjusted EBITDA was partially
mitigated by (i) a $6.8 million increase in revenue; (ii) a $4.2
million decrease in net income attributable to the noncontrolling
interest; (iii) a $3.7 million decrease in direct vessel expenses
(excluding the amortization of deferred drydock and special survey
costs); (iv) a $2.9 million decrease in other expense, net
(excluding compensation from early redelivery of a vessel from its
charterer received in the first quarter of 2016); (v) a $1.7
million gain relating to debt extinguishment; and (vi) a $0.7
million decrease in general and administrative expenses (excluding
share-based compensation expenses).
EBITDA of Navios Logistics was $29.3 million for the six month
period ended June 30, 2016 as compared to $41.8 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 three and six month periods ended June 30, 2017 and 2016,
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, |
|
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Available Days (1) |
|
|
5,968 |
|
|
|
5,198 |
|
|
|
11,771 |
|
|
|
11,158 |
|
|
Operating Days (2) |
|
|
5,963 |
|
|
|
5,181 |
|
|
|
11,752 |
|
|
|
11,037 |
|
|
Fleet Utilization
(3) |
|
|
99.9 |
% |
|
|
99.7 |
% |
|
|
99.8 |
% |
|
|
98.9 |
% |
|
Equivalent Vessels (4)
|
|
|
66 |
|
|
|
57 |
|
|
|
65 |
|
|
|
61 |
|
|
TCE (5) |
|
$ |
9,163 |
|
|
$ |
8,445 |
|
|
$ |
8,519 |
|
|
$ |
7,678 |
|
|
(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 22, 2017, 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, 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: Tuesday, August 22, 2017, at 8:30 am ET Call
Title: Navios Holdings Q2 2017 Financial Results Conference Call US
Dial In: +1.877.480.3873 International Dial In: +1.404.665.9927
Conference ID: 3488 1496
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: 3488 1496
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. (N-OTC:NMCI) 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 Ultra Handymax 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; Vale's obligations under the Vale port contract; 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, 2017 |
|
|
Three Month Period
Ended June 30, 2016 |
|
|
Six Month Period
Ended June 30, 2017 |
|
|
Six Month Period
Ended June 30, 2016 |
|
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
Revenue |
|
|
|
|
|
$ |
118,618 |
|
|
$ |
105,733 |
|
|
$ |
213,964 |
|
|
$ |
207,220 |
|
Administrative fee
revenue from affiliates |
|
|
|
|
|
|
5,360 |
|
|
|
5,463 |
|
|
|
10,658 |
|
|
|
10,945 |
|
Time charter, voyage
and logistics business expenses |
|
|
|
|
|
|
(54,078 |
) |
|
|
(36,095 |
) |
|
|
(104,804 |
) |
|
|
(82,476 |
) |
Direct vessel
expenses(1) |
|
|
|
|
|
|
(31,783 |
) |
|
|
(34,685 |
) |
|
|
(61,827 |
) |
|
|
(64,759 |
) |
General and
administrative expenses incurred on behalf of affiliates |
|
|
|
|
|
|
(5,360 |
) |
|
|
(5,463 |
) |
|
|
(10,658 |
) |
|
|
(10,945 |
) |
General and
administrative expenses(2) |
|
|
|
|
|
|
(6,108 |
) |
|
|
(6,392 |
) |
|
|
(12,492 |
) |
|
|
(12,830 |
) |
Depreciation and
amortization |
|
|
|
|
|
|
(26,091 |
) |
|
|
(27,132 |
) |
|
|
(51,714 |
) |
|
|
(46,959 |
) |
Interest expense and
finance cost, net |
|
|
|
|
|
|
(27,565 |
) |
|
|
(26,698 |
) |
|
|
(54,987 |
) |
|
|
(54,448 |
) |
Impairment loss on sale
of vessel |
|
|
|
|
|
|
(5,141 |
) |
|
|
- |
|
|
|
(14,239 |
) |
|
|
- |
|
Gain on debt
extinguishment |
|
|
|
|
|
|
1,715 |
|
|
|
- |
|
|
|
1,715 |
|
|
|
- |
|
Other (expense)/income,
net |
|
|
|
|
|
|
(1,523 |
) |
|
|
(2,530 |
) |
|
|
(2,878 |
) |
|
|
9,134 |
|
Loss before
equity in net earnings of affiliated companies |
|
|
|
|
|
|
(31,956 |
) |
|
|
(27,799 |
) |
|
|
(87,262 |
) |
|
|
(45,118 |
) |
Equity in net earnings
of affiliated companies |
|
|
|
|
|
|
(3,775 |
) |
|
|
3,424 |
|
|
|
1,307 |
|
|
|
16,376 |
|
Loss before
taxes |
|
|
|
|
|
$ |
(35,731 |
) |
|
$ |
(24,375 |
) |
|
$ |
(85,955 |
) |
|
$ |
(28,742 |
) |
Income tax
benefit/(expense) |
|
|
|
|
|
|
76 |
|
|
|
621 |
|
|
|
493 |
|
|
|
(424 |
) |
Net
loss |
|
|
|
|
|
|
(35,655 |
) |
|
|
(23,754 |
) |
|
|
(85,462 |
) |
|
|
(29,166 |
) |
Less: Net income
attributable to the noncontrolling interest |
|
|
|
|
|
|
(1,603 |
) |
|
|
(2,662 |
) |
|
|
(515 |
) |
|
|
(4,715 |
) |
Net loss
attributable to NaviosHoldings common
stockholders |
|
|
|
|
|
$ |
(37,258 |
) |
|
$ |
(26,416 |
) |
|
$ |
(85,977 |
) |
|
$ |
(33,881 |
) |
Loss
attributable to Navios Holdings common
stockholders, basic and diluted |
|
|
|
|
|
$ |
(39,414 |
) |
|
$ |
(30,387 |
) |
|
$ |
(90,777 |
) |
|
$ |
(41,822 |
) |
Basic and
diluted net losses per share attributable to Navios
Holdings common stockholders |
|
|
|
|
|
$ |
(0.34 |
) |
|
$ |
(0.29 |
) |
|
$ |
(0.79 |
) |
|
$ |
(0.39 |
) |
Weighted
average number of shares, basic and diluted |
|
|
|
|
|
|
116,051,809 |
|
|
|
106,009,049 |
|
|
|
115,612,780 |
|
|
|
106,022,826 |
|
(1) |
|
Includes expenses of
Navios Logistics of $19.1 million and $21.4 million for the three
months ended June 30, 2017 and 2016, respectively and $36.6 million
and $38.1 million for the six months ended June 30, 2017 and 2016,
respectively. |
(2) |
|
Includes expenses of
Navios Logistics of $4.1 million and $3.5 million for the three
months ended June 30, 2017 and 2016, respectively and $7.6 million
and $6.8 million for the six months ended June 30, 2017 and 2016,
respectively. |
NAVIOS MARITIME HOLDINGS
INC.Other Financial Data |
|
|
|
(in thousands
of U.S. dollars) |
|
|
|
|
June 30,2017 |
|
|
December 31,2016 |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, including restricted cash |
|
|
|
|
|
$ |
134,670 |
|
|
$ |
141,378 |
|
Other current
assets |
|
|
|
|
|
|
104,902 |
|
|
|
131,762 |
|
Deposits for vessels,
port terminals and other fixed assets |
|
|
|
|
|
|
27,119 |
|
|
|
136,891 |
|
Vessels, port terminal
and other fixed assets, net |
|
|
|
|
|
|
1,889,671 |
|
|
|
1,821,101 |
|
Other noncurrent
assets |
|
|
|
|
|
|
256,372 |
|
|
|
234,612 |
|
Goodwill and other
intangibles |
|
|
|
|
|
|
283,706 |
|
|
|
287,151 |
|
Total
assets |
|
|
|
|
|
$ |
2,696,440 |
|
|
$ |
2,752,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities,
including current portion of long-term debt, net |
|
|
|
|
|
|
236,396 |
|
|
|
251,783 |
|
Senior and ship
mortgage notes, net |
|
|
|
|
|
|
1,298,452 |
|
|
|
1,296,537 |
|
Long-term debt, net of
current portion |
|
|
|
|
|
|
317,471 |
|
|
|
324,731 |
|
Other noncurrent
liabilities |
|
|
|
|
|
|
124,402 |
|
|
|
76,291 |
|
Total stockholders’
equity |
|
|
|
|
|
|
719,719 |
|
|
|
803,553 |
|
Total
liabilities and stockholders’ equity |
|
|
|
|
|
$ |
2,696,440 |
|
|
$ |
2,752,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 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
|
|
June 30, |
|
|
June 30, |
|
Three Months Ended |
|
2017 |
|
|
2016 |
|
(in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
$ |
20,510 |
|
|
|
$ |
11,197 |
|
|
Net (decrease)/
increase in operating assets |
|
|
(11,272 |
) |
|
|
|
447 |
|
|
Net increase in
operating liabilities |
|
|
(2,328 |
) |
|
|
|
(3,753 |
) |
|
Net interest cost |
|
|
27,564 |
|
|
|
|
26,698 |
|
|
Deferred finance
charges |
|
|
(1,465 |
) |
|
|
|
(1,411 |
) |
|
Provision for losses on
accounts receivable |
|
|
230 |
|
|
|
|
(43 |
) |
|
Equity in affiliates,
net of dividends received |
|
|
(7,812 |
) |
|
|
|
(783 |
) |
|
Payments for drydock
and special survey |
|
|
1,099 |
|
|
|
|
1,709 |
|
|
Noncontrolling
interest |
|
|
(1,603 |
) |
|
|
|
(2,662 |
) |
|
Other gain on
assets |
|
|
21 |
|
|
|
|
- |
|
|
Impairment loss on sale
of vessels |
|
|
(5,141 |
) |
|
|
|
- |
|
|
Gain on debt
extinguishment |
|
|
1,715 |
|
|
|
|
- |
|
|
Loss on
available-for-sale securities |
|
|
- |
|
|
|
|
(345 |
) |
|
EBITDA(1) |
|
$ |
21,518 |
|
|
|
$ |
31,054 |
|
|
Other items from
affiliates |
|
|
4,679 |
|
|
|
|
- |
|
|
Impairment loss on sale
of vessels |
|
|
5,141 |
|
|
|
|
- |
|
|
Adjusted
EBITDA |
|
$ |
31,338 |
|
|
|
$ |
31,054 |
|
(1) |
|
|
|
|
|
|
Three MonthPeriod Ended
June 30, 2017 |
|
|
|
Three MonthPeriod EndedJune 30,
2016 |
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
Net cash provided by operating activities |
|
|
|
|
|
$ |
20,511 |
|
|
$ |
11,197 |
|
Net cash used in investing activities |
|
|
|
|
|
$ |
(12,901 |
) |
|
$ |
(27,656 |
) |
Net cash (used in)/ provided by financing
activities |
|
|
|
|
|
$ |
(11,138 |
) |
|
$ |
2,225 |
|
Navios Logistics EBITDA Reconciliation to Net
income
|
|
June 30, |
|
|
June 30, |
|
Three Months Ended |
|
2017 |
|
|
2016 |
|
(in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
4,430 |
|
|
|
$ |
7,362 |
|
|
|
Depreciation and
amortization |
|
|
6,378 |
|
|
|
|
6,387 |
|
|
|
Amortization of
deferred drydock and special survey costs |
|
|
2,309 |
|
|
|
|
1,787 |
|
|
|
Interest expense and
finance cost, net |
|
|
6,295 |
|
|
|
|
5,829 |
|
|
|
Income tax benefit |
|
|
(144 |
) |
|
|
|
(694 |
) |
|
|
EBITDA |
|
$ |
19,268 |
|
|
|
$ |
20,671 |
|
|
Navios Holdings Reconciliation of EBITDA and Adjusted
EBITDA to Cash from Operations
|
|
June
30, |
|
|
June
30, |
|
Six Months Ended |
|
2017 |
|
|
2016 |
|
(in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities |
|
$ |
49,102 |
|
|
|
$ |
40,137 |
|
|
|
Net (decrease)/
increase in operating assets |
|
|
(42,315 |
) |
|
|
|
11,776 |
|
|
|
Net increase in
operating liabilities |
|
|
(17,018 |
) |
|
|
|
(33,156 |
) |
|
|
Net interest cost |
|
|
54,986 |
|
|
|
|
54,448 |
|
|
|
Deferred finance
charges |
|
|
(2,854 |
) |
|
|
|
(2,695 |
) |
|
|
Provision for losses on
accounts receivable |
|
|
(24 |
) |
|
|
|
(149 |
) |
|
|
Equity in affiliates,
net of dividends received |
|
|
(6,991 |
) |
|
|
|
8,105 |
|
|
|
Payments for drydock
and special survey |
|
|
7,054 |
|
|
|
|
3,072 |
|
|
|
Noncontrolling
interest |
|
|
(515 |
) |
|
|
|
(4,715 |
) |
|
|
Other gain on
assets |
|
|
1,051 |
|
|
|
|
- |
|
|
|
Impairment loss on sale
of vessels |
|
|
(14,239 |
) |
|
|
|
- |
|
|
|
Gain on debt
extinguishment |
|
|
1,715 |
|
|
|
|
- |
|
|
|
Loss on
available-for-sale securities |
|
|
- |
|
|
|
|
(345 |
) |
|
|
EBITDA(1) |
|
$ |
29,952 |
|
|
|
$ |
76,478 |
|
|
|
Other items from
affiliates |
|
|
4,679 |
|
|
|
|
- |
|
|
|
Impairment loss on sale
of vessels |
|
|
14,239 |
|
|
|
|
- |
|
|
|
Compensation from early
redelivery of a vessel from its charterer |
|
|
- |
|
|
|
|
(14,871 |
) |
|
|
Adjusted
EBITDA |
|
$ |
48,870 |
|
|
|
$ |
61,607 |
|
|
(1) |
|
|
|
|
|
|
Six MonthPeriod Ended
June 30, 2017 |
|
|
|
Six MonthPeriod EndedJune 30,
2016 |
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
Net cash provided by operating activities |
|
|
|
|
|
$ |
49,103 |
|
|
$ |
40,137 |
|
Net cash used in investing activities |
|
|
|
|
|
$ |
(35,878 |
) |
|
$ |
(112,319 |
) |
Net cash (used in)/ provided by financing
activities |
|
|
|
|
|
$ |
(19,009 |
) |
|
$ |
49,299 |
|
Navios Logistics EBITDA Reconciliation to Net
income
|
|
|
|
|
|
|
|
|
June 30, |
|
|
June 30, |
|
Six
Months Ended |
|
2017 |
|
|
2016 |
|
(in
thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
1,423 |
|
|
|
$ |
13,036 |
|
|
Depreciation and
amortization |
|
|
12,468 |
|
|
|
|
13,061 |
|
|
Amortization of
deferred drydock and special survey costs |
|
|
4,007 |
|
|
|
|
3,385 |
|
|
Interest expense and
finance cost, net |
|
|
12,076 |
|
|
|
|
12,033 |
|
|
Income tax (benefit)/
expense |
|
|
(628 |
) |
|
|
|
282 |
|
|
EBITDA |
|
$ |
29,346 |
|
|
|
$ |
41,797 |
|
EXHIBIT II
|
Owned Vessels |
|
|
|
|
|
|
|
|
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metric tons)
|
|
Navios
Serenity |
|
Handysize |
|
2011 |
|
34,690 |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long term Chartered-in Fleet in Operation
|
|
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metrictons) |
|
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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