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 fourth
quarter and year ended December 31, 2017.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
"I am pleased with the results of the full year and fourth quarter
of 2017. For the full year, we reported revenue and Adjusted
EBITDA of $463.0 million and $126.8 million, respectively.
For the fourth quarter, we reported revenue and Adjusted EBITDA of
$128.5 million and $46.7 million, respectively. Rates for dry
bulk vessels have improved materially, and in Q4 2017 we began to
enjoy the effects of healthier charter markets.”
Angeliki Frangou continued, "We are expanding our fleet capacity
and creating market exposure at an opportune time. During the past
nine months, we added nine younger vessels (eight kamsarmaxes and
one cape) and sold two older vessels, thereby increasing fleet
capacity and improving the average age of our fleet by
11%. We did this using modest capex, as we chartered in
the kamsarmaxes, three with favorable purchase options. Also,
our chartering strategy created market exposure for 73% of our
22,684 available days in 2018."
HIGHLIGHTS – RECENT DEVELOPMENTS
Fleet update – Renewal and Expansion
Navios Holdings controls a fleet of 72 vessels totaling 7.3
million dwt, of which 39 are owned and 33 are chartered-in under
long-term charters (collectively, the "Core Fleet"). The fleet
consists of 21 Capesize, 31 Panamax, 18 Ultra Handymax and two
Handysize vessels, with an average age of 7.7 years, basis fully
delivered fleet.
Navios Holdings agreed to charter-in eight Panamax vessels, five
of which under long term time charters and three of which under
bareboat charters with purchase options. In January 2018, Navios
Holdings took delivery of the first vessel. The remaining seven
vessels are expected to be delivered at various dates though the
first quarter of 2020.
In February 2018, Navios Holdings acquired Navios Equator
Prosper, a 2000 built 171,191 dwt vessel, previously a chartered-in
vessel, for an acquisition price of $10.0 million.
Following the above transactions, Navios Holdings has increased
its fleet capacity by 11% and decreased the average fleet age,
basis fully delivered fleet, by 11%. In addition, 70% of the
chartered-in fleet has purchase options.
As of February 12, 2018, Navios Holdings has chartered-out 65.2%
of available days for 2018, out of which 27.0% on fixed rate and
38.2% on index or profit sharing. The average contracted daily
charter-in rate for the long-term charter-in vessels for 2018 is
$12,952.
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.
Navios Maritime Partners L.P. (“Navios
Partners”)
On February 13, 2018, Navios Partners announced that it has
agreed with investors to sell approximately 18.4 million common
units for an aggregate of approximately $35.0 million in a
registered direct offering at $1.90 per common unit, which includes
the sale of approximately $5.0 million of common units to Navios
Holdings. The offering is expected to close on or about February
21, 2018. Following the closing of this offering, Navios
Holdings will hold a 20.2% interest in Navios Partners, including
the 2% general partnership interest.
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.
Fourth Quarter 2017 and 2016 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The fourth 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 |
|
|
|
December 31, |
|
December 31, |
|
|
|
2017 |
|
2016 |
|
|
|
(unaudited) |
|
(unaudited) |
|
Revenue |
$ |
128,530 |
|
|
$ |
99,475 |
|
|
|
Net
Loss |
$ |
(51,601 |
) |
|
$ |
(242,439 |
) |
|
|
Adjusted
Net Loss |
$ |
(12,580 |
) |
(1 |
) |
$ |
(27,644 |
) |
(2 |
) |
|
Net cash
provided by/ (used in) operating activities |
$ |
14,370 |
|
|
$ |
(5,357 |
) |
|
|
EBITDA |
$ |
7,669 |
|
|
$ |
(185,694 |
) |
|
|
Adjusted
EBITDA |
$ |
46,690 |
|
(1 |
) |
$ |
29,101 |
|
(2 |
) |
|
Basic Loss
per Share |
$ |
(0.46 |
) |
|
$ |
(1.80 |
) |
|
|
Adjusted
Basic Loss per Share |
$ |
(0.13 |
) |
(1 |
) |
$ |
(0.28 |
) |
(3 |
) |
|
(1) |
|
Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss per Share for the three
months ended December 31, 2017 exclude (i) $36.3 million impairment
losses of one vessel and intangible asset and (ii) bond
extinguishment losses of $2.7 million. |
(2) |
|
Adjusted EBITDA and
Adjusted Net Loss for the three months ended December 31, 2016
exclude (i) $228.0 million other-than-temporary impairment (“OTTI”)
relating to our investments in affiliates and (ii) debt
extinguishment gains of $13.2 million. |
(3) |
|
Adjusted Basic Loss per
Share for the three months ended December 31, 2016 exclude items
referred in footnote (2) as well as a benefit of $46.6 million
following the completion of the Series G and Series H Exchange
Program. |
Revenue from dry bulk vessel operations for the three months
ended December 31, 2017 was $78.6 million as compared to $56.5
million for the same period during 2016. The increase in dry bulk
revenue was mainly attributable to (i) the increase in the
time charter equivalent (“TCE”) per day by 45.7% to $12,305 per day
in the fourth quarter of 2017, as compared to $8,445 per day in the
same period of 2016; and (ii) an increase in available days of
our fleet by 253 days, mainly due to an increase in long-term
charter-in fleet available days.
Revenue from the logistics business was $49.9 million for the
three months ended December 31, 2017 as compared to $43.0 million
for the same period in 2016. The increase was mainly attributable
to (i) a $11.7 million increase in revenue from the port terminal
business mainly due to the commencement of operations at the new
iron ore terminal and (ii) a $1.3 million increase in revenue from
the cabotage business mainly due to an increase in operating days.
The overall increase was partially mitigated by (i) a $4.8 million
decrease in revenue from the barge business mainly due to the
expiration of certain iron ore transportation contracts; and (ii) a
$1.3 million decrease in sales of products mainly due to a decrease
in the Paraguayan liquid port's volume of products sold.
Net Loss of Navios Holdings was $51.6 million and $242.4 million
for the three months ended December 31, 2017 and 2016,
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 December 31, 2017 was $12.6
million as compared to $27.6 million for the same period of 2016.
The $15.0 million decrease in Adjusted Net Loss was mainly due to
(i) an increase in Adjusted EBITDA by $17.6 million and (ii) an
increase in income tax benefit of $2.0 million. This overall
increase of $19.6 million was partially mitigated by (i) an
increase in interest expense and finance cost, net by $3.6 million;
(ii) an increase in depreciation and amortization by $0.8 million;
(iii) an increase in amortization for deferred drydock and special
survey costs of $0.1 million; and (iv) an increase in share-based
compensation expense of $0.1 million.
Net loss of Navios Logistics was $0.2 million for the three
month period ended December 31, 2017 as compared to $5.7 million
for the same period in 2016.
Adjusted EBITDA of Navios Holdings for the three months ended
December 31, 2017 increased by $17.6 million to $46.7 million as
compared to $29.1 million for the same period of 2016. The increase
in Adjusted EBITDA was primarily due to (i) a $29.0 million
increase in revenue and (ii) a $3.3 million decrease in direct
vessel expenses (excluding the amortization of deferred drydock and
special survey costs). This overall increase of $32.3 million was
partially mitigated by (i) a $7.4 million decrease in equity in net
earnings from affiliated companies; (ii) a $2.0 million increase in
net income attributable to noncontrolling interest; (iii) a $1.9
million increase in general and administrative expenses (excluding
share-based compensation expenses); (iv) a $1.9 million increase in
other income/ (expense), net; and (v) a $1.5 million increase in
time charter, voyage and logistics business expenses.
EBITDA of Navios Logistics was $15.0 million for the three month
period ended December 31, 2017, as compared to $7.1 million for the
same period in 2016.
Year Ended December 31, 2017 and 2016 Results (in
thousands of U.S. dollars, except per share data and unless
otherwise stated):
The information for the year ended December 31, 2017 and 2016
presented below was derived from the unaudited condensed
consolidated financial statements for the respective periods.
|
YearEnded |
|
YearEnded |
|
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
|
(unaudited) |
|
(unaudited) |
|
Revenue |
$ |
463,049 |
|
|
$ |
419,782 |
|
|
Net Loss |
$ |
(165,910 |
) |
|
$ |
(303,823 |
) |
|
Adjusted Net Loss |
$ |
(107,971 |
) |
(1 |
) |
$ |
(106,130 |
) |
(4 |
) |
Net cash provided by
operating activities |
$ |
50,784 |
|
|
$ |
36,920 |
|
|
EBITDA |
$ |
68,813 |
|
|
$ |
(62,827 |
) |
|
Adjusted EBITDA |
$ |
126,752 |
|
(1 |
) |
$ |
129,173 |
|
(3 |
) |
Basic Loss per
Share |
$ |
(1.50 |
) |
|
$ |
(2.54 |
) |
|
Adjusted Basic Loss per
Share |
$ |
(1.01 |
) |
(2 |
) |
$ |
(1.14 |
) |
(4 |
) |
(1) |
|
Adjusted
EBITDA and Adjusted Net Loss for the year ended December 31, 2017
exclude (i) $36.3 million of impairment losses of one vessel and an
intangible asset; (ii) $14.2 million impairment losses on the sale
of Navios Ionian and Navios Horizon; (iii) $4.7 million non-cash
impairment losses relating to our affiliates; and (iv) bond
extinguishment losses of $2.7 million. |
(2) |
|
Adjusted
Basic Loss per Share for the year ended December 31, 2017 exclude
items referred in footnote (1) as well as a benefit of $1.0 million
following the completion of the Series G and Series H Exchange
Programs. |
(3) |
|
Adjusted
EBITDA for the year ended December 31, 2016 exclude (i) non-cash
OTTI losses of $228.0 million relating to our investment in
affiliates, (ii) debt extinguishment gains of $29.1 million, (iii)
non-cash losses of $8.0 million relating to our share in Navios
Partners’ impairment losses; and (iv) a $14.9 million compensation
from the early redelivery of a vessel from its charterer. |
(4) |
|
Adjusted
Net Loss and Adjusted Basic Loss per Share for the year ended
December 31, 2016 exclude items referred in footnote (3) as well as
(i) a $7.3 million income from the write-off of an intangible
liability due to the early redelivery of a vessel; (ii) a $13.0
million write-off of intangible assets due to the early redelivery
of a charter-in vessel; and (iii) a benefit of $46.6 million
following the completion of the Series G and Series H Exchange
Program. |
Revenue from dry bulk vessel operations for the year ended
December 31, 2017 was $250.4 million as compared to $199.5 million
for the same period during 2016. The increase in dry bulk revenue
was mainly attributable to (i) the increase in TCE per day by 18.1%
to $9,705 per day in the year ended December 31, 2017 as compared
to $8,220 per day in the same period in 2016; and (ii) an increase
in available days of our fleet by 1,525 days, mainly due to an
increase in long-term charter-in fleet available days.
Revenue from the logistics business was $212.6 million for the
year ended December 31, 2017 as compared to $220.3 million for the
same period during 2016. The decrease was mainly attributable to
(i) a $22.9 million decrease in revenue from barge business mainly
due to the expiration of certain iron ore transportation contracts
and (ii) a $4.5 million decrease in revenue from the cabotage
business mainly due to a decrease in operating days of the cabotage
fleet. The overall decrease was partially mitigated by (i) a $17.2
million increase in port terminal revenue due to the commencement
of operations at the new iron ore terminal and (ii) a $2.5 million
increase in sales of products mainly due to an increase in the
Paraguayan liquid port's volume of products sold.
Net Loss of Navios Holdings was $165.9 million and $303.8
million for the year ended December 31, 2017 and 2016,
respectively. Net Loss was affected by the items described in the
table above. Excluding these items, Adjusted Net Loss of Navios
Holdings for year ended December 31, 2017 was $108.0 million as
compared to $106.1 million for the same period of 2016. The $1.9
million increase in Adjusted Net Loss was mainly due to (i) an
increase in interest expense and finance cost, net of $6.1 million;
(ii) a decrease in Adjusted EBITDA of $2.4 million; (iii) an
increase of $1.0 million in share-based compensation expense; and
(iv) an increase of $0.9 million in amortization for deferred
drydock and special survey costs. This overall increase was
partially offset by (i) an increase in income tax benefit of $4.5
million; and (ii) a decrease in depreciation and amortization of
$4.0 million.
Net Income of Navios Logistics was $3.1 million for the year
ended December 31, 2017, as compared to $10.2 million for the same
period in 2016.
Adjusted EBITDA of Navios Holdings for the year ended December
31, 2017 decreased by $2.4 million to $126.8 million as compared to
$129.2 million for the same period of 2016. The $2.4 million
decrease in Adjusted EBITDA was primarily due to (i) a $38.8
million increase in time charter, voyage and logistics business
expenses; (ii) a $24.1 million decrease in equity in net earnings
from affiliated companies; and (iii) a $1.4 million increase in
general and administrative expenses (excluding share-based
compensation expenses). This overall decrease was partially offset
by (i) a $43.2 million increase in revenue; (ii) a $11.5 million
decrease in direct vessel expenses (excluding the amortization of
deferred drydock and special survey costs); (iii) a $2.9 million
decrease in other income/ (expense), net; (iv) a $2.6 million
decrease in net income attributable to the noncontrolling interest
and (v) a $1.7 million gain on debt extinguishment.
EBITDA of Navios Logistics was $62.5 million for the year ended
December 31, 2017, as compared to $68.1 million for the same period
in 2016.
Fleet Summary Data:
The following table reflects certain key indicators indicative
of the performance of Navios Holdings' dry bulk operations
(excluding the Navios Logistics fleet) and its fleet performance
for the three month period and year ended December 31, 2017 and
2016, respectively.
|
Three Month |
|
Three Month |
|
Year |
|
Year |
|
|
Period Ended |
|
Period Ended |
|
Ended |
|
Ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
Available Days (1) |
|
5,869 |
|
|
|
5,616 |
|
|
|
23,433 |
|
|
|
21,908 |
|
|
Operating Days (2) |
|
5,845 |
|
|
|
5,595 |
|
|
|
23,359 |
|
|
|
21,742 |
|
|
Fleet Utilization
(3) |
|
99.6 |
% |
|
|
99.6 |
% |
|
|
99.7 |
% |
|
|
99.2 |
% |
|
Equivalent Vessels
(4) |
|
64 |
|
|
|
61 |
|
|
|
64 |
|
|
|
60 |
|
|
TCE (5) |
$ |
12,305 |
|
|
$ |
8,445 |
|
|
$ |
9,705 |
|
|
$ |
8,220 |
|
|
(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, February 21,
2018, at 8:30 am ET, at which time Navios Holdings' senior
management will provide highlights and commentary on earnings
results for the fourth quarter and year ended December 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, February 21, 2018, at 8:30 am ET Call
Title: Navios Holdings Q4 2017 Financial Results Conference Call US
Dial In: +1.877.480.3873 International Dial In: +1.404.665.9927
Conference ID: 309 8887
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: 309 8887
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 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 2018 cash flow generation, future contracted
revenues, potential capital gains, our ability to take advantage of
dislocation in the market and any market recovery, 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 Forms
20-F and Forms 6-K. 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.
Contact:
Navios Maritime Holdings
Inc.+1.212.906.8643investors@navios.com
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 December 31, 2017 |
|
|
Three Month Period
Ended December 31, 2016 |
|
|
YearEnded December 31,
2017 |
|
|
Year Ended December 31,
2016 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
Revenue |
$ |
128,530 |
|
|
$ |
99,475 |
|
|
$ |
463,049 |
|
|
$ |
419,782 |
|
Administrative fee
revenue from affiliates |
|
6,725 |
|
|
|
5,382 |
|
|
|
23,667 |
|
|
|
21,799 |
|
Time charter, voyage
and logistics business expenses |
|
(52,301 |
) |
|
|
(50,750 |
) |
|
|
(213,929 |
) |
|
|
(175,072 |
) |
Direct vessel
expenses(1) |
|
(26,147 |
) |
|
|
(29,368 |
) |
|
|
(116,713 |
) |
|
|
(127,396 |
) |
General and
administrative expenses incurred on behalf of affiliates |
|
(6,725 |
) |
|
|
(5,382 |
) |
|
|
(23,667 |
) |
|
|
(21,799 |
) |
General and
administrative expenses(2) |
|
(8,318 |
) |
|
|
(6,283 |
) |
|
|
(27,521 |
) |
|
|
(25,295 |
) |
Depreciation and
amortization |
|
(26,219 |
) |
|
|
(25,434 |
) |
|
|
(104,112 |
) |
|
|
(113,825 |
) |
Interest expense and
finance cost, net |
|
(30,968 |
) |
|
|
(27,435 |
) |
|
|
(114,780 |
) |
|
|
(108,692 |
) |
Impairment losses |
|
(36,326 |
) |
|
|
- |
|
|
|
(50,565 |
) |
|
|
- |
|
(Loss)/gain on bond and
debt extinguishment |
|
(2,695 |
) |
|
|
13,231 |
|
|
|
(981 |
) |
|
|
29,187 |
|
Other (expense)/
income, net |
|
(2,037 |
) |
|
|
(84 |
) |
|
|
(6,826 |
) |
|
|
5,206 |
|
Loss before
equity in net earnings of affiliated companies |
|
(56,481 |
) |
|
|
(26,648 |
) |
|
|
(172,378 |
) |
|
|
(96,105 |
) |
Equity/(loss) in net
earnings of affiliated companies |
|
2,191 |
|
|
|
(218,420 |
) |
|
|
4,399 |
|
|
|
(202,779 |
) |
Loss before
taxes |
$ |
(54,290 |
) |
|
$ |
(245,068 |
) |
|
$ |
(167,979 |
) |
|
$ |
(298,884 |
) |
Income tax
benefit/(expense) |
|
2,630 |
|
|
|
572 |
|
|
|
3,192 |
|
|
|
(1,265 |
) |
Net
loss |
|
(51,660 |
) |
|
|
(244,496 |
) |
|
|
(164,787 |
) |
|
|
(300,149 |
) |
Less: Net loss/
(income) attributable to the noncontrolling interest |
|
59 |
|
|
|
2,057 |
|
|
|
(1,123 |
) |
|
|
(3,674 |
) |
Net loss
attributable to NaviosHoldings common
stockholders |
$ |
(51,601 |
) |
|
$ |
(242,439 |
) |
|
$ |
(165,910 |
) |
|
$ |
(303,823 |
) |
Loss
attributable to Navios Holdings common
stockholders, basic and diluted |
$ |
(54,249 |
) |
|
$ |
(199,793 |
) |
|
$ |
(175,298 |
) |
|
$ |
(273,105 |
) |
Basic and
diluted net losses per share attributable to Navios Holdings common
stockholders |
$ |
(0.46 |
) |
|
$ |
(1.80 |
) |
|
$ |
(1.50 |
) |
|
$ |
(2.54 |
) |
Weighted
average number of shares, basic and diluted |
|
117,898,455 |
|
|
|
110,968,610 |
|
|
|
116,673,459 |
|
|
|
107,366,783 |
|
(1 |
) |
Includes
expenses of Navios Logistics of $15.5 million and $16.9 million for
the three months ended December 31, 2017 and 2016, respectively and
$70.5 million and $76.0 million for the year ended December 31,
2017 and 2016, respectively. |
(2 |
) |
Includes
expenses of Navios Logistics of $5.0 million and $4.0 million for
the three months ended December 31, 2017 and 2016, respectively and
$16.7 million and $14.3 million for the year ended December 31,
2017 and 2016, respectively. |
|
|
|
NAVIOS MARITIME HOLDINGS
INC.Other Financial Data
|
|
|
|
|
|
|
|
December
31, 2017 |
|
December 31,
2016 |
|
|
(unaudited) |
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
Cash and cash
equivalents, including restricted cash |
$ |
134,190 |
|
$ |
141,378 |
|
Other current
assets |
|
121,886 |
|
|
131,762 |
|
Deposits for vessels,
port terminals and other fixed assets |
|
36,849 |
|
|
136,891 |
|
Vessels, port terminal
and other fixed assets, net |
|
1,809,225 |
|
|
1,821,101 |
|
Other non-current
assets |
|
251,073 |
|
|
234,612 |
|
Goodwill and other
intangibles |
|
276,758 |
|
|
287,151 |
|
Total
assets |
$ |
2,629,981 |
|
$ |
2,752,895 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
Current liabilities,
including current portion of long-term debt, net |
|
236,194 |
|
|
251,783 |
|
Senior and ship
mortgage notes, net |
|
1,301,999 |
|
|
1,296,537 |
|
Long-term debt, net of
current portion |
|
346,604 |
|
|
324,731 |
|
Other non-current
liabilities |
|
128,020 |
|
|
76,291 |
|
Total stockholders’
equity |
|
617,164 |
|
|
803,553 |
|
Total
liabilities and stockholders’ equity |
$ |
2,629,981 |
|
$ |
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)/recovery 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
|
December 31, |
|
December 31, |
Three Months
Ended |
2017 |
|
2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net cash provided by/
(used in) operating activities |
$ |
14,370 |
|
|
$ |
(5,357 |
) |
Net increase in
operating assets |
|
8,738 |
|
|
|
576 |
|
Net increase in
operating liabilities |
|
(8,711 |
) |
|
|
(2,391 |
) |
Net interest cost |
|
30,968 |
|
|
|
27,435 |
|
Deferred finance
charges |
|
(2,097 |
) |
|
|
(1,599 |
) |
Provision for losses on
accounts receivable |
|
(545 |
) |
|
|
(702 |
) |
Equity in affiliates,
net of dividends received |
|
1,954 |
|
|
|
5,361 |
|
Payments for drydock
and special survey costs |
|
800 |
|
|
|
3,721 |
|
Noncontrolling
interest |
|
59 |
|
|
|
2,057 |
|
Other loss on sale of
assets |
|
(11 |
) |
|
|
— |
|
(Loss)/ gain on bond
and debt extinguishment |
|
(1,530 |
) |
|
|
13,231 |
|
Impairment loss on
investments in affiliates |
|
— |
|
|
|
(228,026 |
) |
Other impairment
losses |
|
(36,326 |
) |
|
|
— |
|
EBITDA |
$ |
7,669 |
|
|
$ |
(185,694 |
) |
Loss/ (gain) on bond
and debt extinguishment |
|
2,695 |
|
|
|
(13,231 |
) |
Impairment loss on
investments in affiliates |
|
— |
|
|
|
228,026 |
|
Other impairment
losses |
|
36,326 |
|
|
|
— |
|
Adjusted
EBITDA |
$ |
46,690 |
|
|
$ |
29,101 |
|
Three Month
Period Ended(in thousands of U.S.
dollars) |
December 31,
2017 |
|
December 31,
2016 |
|
(unaudited) |
|
(unaudited) |
Net cash
provided by/ (used in) operating activities |
$ |
14,370 |
|
|
$ |
(5,357 |
) |
Net cash
used in investing activities |
$ |
(9,378 |
) |
|
$ |
(21,156 |
) |
Net cash
provided by financing activities |
$ |
8,442 |
|
|
$ |
3,950 |
|
Navios Logistics EBITDA Reconciliation to Net
Loss
|
December 31, |
|
December 31, |
Three Months
Ended |
2017 |
|
2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net loss |
$ |
(162 |
) |
|
$ |
(5,685 |
) |
Depreciation and
amortization |
|
7,241 |
|
|
|
5,887 |
|
Amortization of
deferred drydock and special survey costs |
|
2,054 |
|
|
|
1,804 |
|
Interest expense and
finance cost, net |
|
8,587 |
|
|
|
5,754 |
|
Income tax benefit |
|
(2,705 |
) |
|
|
(641 |
) |
EBITDA |
$ |
15,015 |
|
|
$ |
7,119 |
|
Navios Holdings Reconciliation of EBITDA and Adjusted
EBITDA to Cash from Operations
|
December 31, |
|
December
31, |
Year
Ended |
2017 |
|
2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net cash provided by
operating activities |
$ |
50,784 |
|
|
$ |
36,920 |
|
Net (decrease)/increase
in operating assets |
|
(25,052 |
) |
|
|
20,599 |
|
Net increase in
operating liabilities |
|
(20,814 |
) |
|
|
(38,928 |
) |
Net interest cost |
|
114,780 |
|
|
|
108,692 |
|
Deferred finance
charges |
|
(6,391 |
) |
|
|
(5,653 |
) |
Provision for losses on
accounts receivable |
|
(269 |
) |
|
|
(1,304 |
) |
Equity in affiliates,
net of dividends received |
|
(4,610 |
) |
|
|
8,609 |
|
Payments for drydock
and special survey costs |
|
10,824 |
|
|
|
11,096 |
|
Noncontrolling
interest |
|
(1,123 |
) |
|
|
(3,674 |
) |
Other gain on sale of
assets |
|
1,064 |
|
|
|
— |
|
Gain on bond and debt
extinguishment |
|
185 |
|
|
|
29,187 |
|
Impairment loss on
investments in affiliates |
|
— |
|
|
|
(228,026 |
) |
Other impairment
losses |
|
(50,565 |
) |
|
|
— |
|
Loss on sale and
reclassification to earnings of available for sale securities |
|
— |
|
|
|
(345 |
) |
EBITDA |
$ |
68,813 |
|
|
$ |
(62,827 |
) |
Loss/(gain) on bond and
debt extinguishment |
|
2,695 |
|
|
|
(29,187 |
) |
Impairment loss on
investments in affiliates |
|
— |
|
|
|
228,026 |
|
Other impairment
losses |
|
50,565 |
|
|
|
— |
|
Other items from
affiliates |
|
4,679 |
|
|
|
8,032 |
|
Compensation from early
redelivery of a vessel from its charterer |
|
— |
|
|
|
(14,871 |
) |
Adjusted
EBITDA |
$ |
126,752 |
|
|
$ |
129,173 |
|
Year Ended |
December 31, 2017 |
|
December 31, 2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
Net cash
provided by operating activities |
$ |
50,784 |
|
|
$ |
36,920 |
|
Net cash
used in investing activities |
$ |
(42,365 |
) |
|
$ |
(150,565 |
) |
Net cash
(used in)/ provided by financing activities |
$ |
(16,779 |
) |
|
$ |
86,225 |
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
December 31, |
|
December 31, |
Year
Ended |
2017 |
|
2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net income |
$ |
3,105 |
|
|
$ |
10,157 |
Depreciation and
amortization |
|
26,865 |
|
|
|
26,628 |
Amortization of
deferred drydock and special survey costs |
|
7,928 |
|
|
|
6,870 |
Interest expense and
finance cost, net |
|
28,109 |
|
|
|
23,425 |
Income tax
(benefit)/expense |
|
(3,468 |
) |
|
|
982 |
EBITDA |
$ |
62,539 |
|
|
$ |
68,062 |
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
Equator Prosper |
|
Capesize |
|
2000 |
|
171,191 |
Navios
Stellar |
|
Capesize |
|
2009 |
|
169,001 |
Navios
Bonavis |
|
Capesize |
|
2009 |
|
180,022 |
Navios
Happiness |
|
Capesize |
|
2009 |
|
180,022 |
Navios
Phoenix |
|
Capesize |
|
2009 |
|
180,242 |
Navios
Lumen |
|
Capesize |
|
2009 |
|
180,661 |
Navios
Antares |
|
Capesize |
|
2010 |
|
169,059 |
Navios
Etoile |
|
Capesize |
|
2010 |
|
179,234 |
Navios
Bonheur |
|
Capesize |
|
2010 |
|
179,259 |
Navios
Altamira |
|
Capesize |
|
2011 |
|
179,165 |
Navios
Azimuth |
|
Capesize |
|
2011 |
|
179,169 |
Navios
Ray |
|
Capesize |
|
2012 |
|
179,515 |
Navios
Gem |
|
Capesize |
|
2014 |
|
181,336 |
Navios
Mars |
|
Capesize |
|
2016 |
|
181,259 |
|
|
|
|
|
|
|
|
Long term Chartered-in Fleet in
Operation
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metric tons) |
|
Purchase Option(1) |
|
Navios
Lyra |
|
Handysize |
|
2012 |
|
34,718 |
|
Yes
(2) |
|
Navios
Primavera |
|
Ultra
Handymax |
|
2007 |
|
53,464 |
|
Yes |
|
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 |
|
Elsa S |
|
Panamax |
|
2015 |
|
80,954 |
|
No |
|
Navios
Coral |
|
Panamax |
|
2016 |
|
84,904 |
|
Yes |
|
Navios
Dolphin |
|
Panamax |
|
2017 |
|
81,630 |
|
Yes |
|
Navios
Citrine |
|
Panamax |
|
2017 |
|
81,626 |
|
Yes |
|
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 |
|
Long term Chartered-in Fleet to be
delivered
Vessel Name |
|
Vessel Type |
|
Delivery date |
|
Deadweight (in metric tons) |
|
Purchase Option(1) |
|
TBN |
|
Panamax |
|
March
2018 |
|
82,000 |
|
No |
|
TBN |
|
Panamax |
|
May
2018 |
|
82,000 |
|
No |
|
TBN |
|
Panamax |
|
Q4
2018 |
|
81,500 |
|
No(3) |
|
TBN |
|
Panamax |
|
Q1
2019 |
|
81,500 |
|
No(3) |
|
Long term Bareboat Chartered-in Fleet to be
delivered
Vessel Name |
|
Vessel Type |
|
Delivery date |
|
Deadweight (in metric tons) |
|
Purchase Option(1) |
TBN |
|
Panamax |
|
Q4
2019 |
|
82,000 |
|
Yes |
TBN |
|
Panamax |
|
Q1
2020 |
|
82,000 |
|
Yes |
TBN |
|
Panamax |
|
Q4
2019 |
|
82,000 |
|
Yes |
(1 |
) |
Generally, Navios Holdings
may exercise its purchase option after three to five years of
service. |
(2 |
) |
Navios Holdings holds the
initial 50% purchase option on the vessel. |
(3 |
) |
Navios Holdings has the
right of first refusal and profit share on sale of vessel. |
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