Navios Maritime Holdings Inc. (“Navios Holdings” or the “Company”)
(NYSE: NM), a global seaborne shipping and logistics company, today
reported financial results for the first quarter ended March 31,
2021.
Angeliki Frangou, Chairman and Chief Executive
Officer, stated, “I am pleased with the results
for the first quarter of 2021. In the
first quarter of 2021, Navios Holdings reported revenue of
$117.0 million and Adjusted EBITDA of
$48.4 million.”
Angeliki Frangou continued, “The global pandemic
is subsiding as the vaccines rollout gathers momentum.
This along with accommodative policy
measures are propelling economic activity. The
IMF recently increased its 2021 GDP growth forecast 6%, giving
us optimism about demand for drybulk vessels.
In fact, we are enjoying this impact in our business, with our
first quarter 2021 TCE rates more than double our first quarter
2020 TCE rates and about 9% higher sequentially over fourth quarter
of 2020.”
HIGHLIGHTS – RECENT
DEVELOPMENTS
Vessel Sales
The Company agreed to sell to unrelated third
parties: (i) the Navios Astra, a 2006-built Ultra-Handymax vessel
of 53,468 dwt, for a sale price of $6.8 million (completed in
February 2021); and (ii) the Navios Serenity, a 2011-built
Handysize vessel of 34,690 dwt for a sale price of $10.6 million
(expected to be completed in June 2021).
The Company agreed to sell to a related party:
(i) the Navios Centaurus, a 2012-built Panamax vessel of 81,472
dwt, and the Navios Avior, a 2012-built Panamax vessel of 81,355
dwt, for a sale price of $39.3 million, including working capital
adjustments (completed in March 2021); and (ii) a 2011-built
Capesize vessel that is currently chartered-in by Navios Holdings.
The net sale proceeds are expected to be $8.5 million (expected to
be completed in June 2021).
Debt Reduction
Year to date, the Company repaid $71.0 million
of outstanding credit facilities.
Bond Maturities
Our 7.375% First Priority Ship Mortgage Notes
mature in January 2022 (the “2022 Notes”). Our 11.25% Senior
Secured Notes mature in August 2022 (the “2022 Senior Secured
Notes”). Under the terms of the 2022 Senior Secured Notes, Navios
Holdings has an obligation to make a springing maturity offer in
September 2021 to repurchase those notes at par unless certain
conditions relating to the refinancing of our 2022 Notes are met.
In October 2020, Navios Holdings entered into a supplemental
indenture (the “Sixth Supplemental Indenture”) which, among other
things, eliminates Navios Holdings' obligation to make a springing
maturity offer subject to the occurrence of a Qualified IPO (as
defined in the Sixth Supplemental Indenture) of Navios South
American Logistics Inc. (“Navios Logistics”). There can be no
assurance a Qualified IPO will occur prior to the springing
maturity date, or at all.
Although Navios Holdings is currently attempting
to address these upcoming maturities and create additional
liquidity to fund working capital requirements through the sale of
assets and refinancing plans, there can be no assurance it will be
successful in such attempts or that any such attempts will be
consummated on terms satisfactory to the Company, or at all.
Fleet Statistics
Navios Holdings controls a fleet of 43 vessels
(excluding two vessels agreed to be sold) totaling 4.8 million dwt,
of which 28 are owned (including five bareboat-in vessels) and 15
are chartered-in under long-term charters (collectively, the "Core
Fleet"). The fleet consists of 15 Capesize, 23 Panamax, four
Ultra-Handymax and one Handysize vessels, with an average age of
8.3 years.
Navios Holdings has currently chartered-out
78.7% of available days for the remaining nine months of 2021. Of
these available days, 35.2% are chartered-out on fixed rate and
43.5% are chartered-out on index.
The average contracted daily charter-in rate for
the long-term charter-in vessels (excluding our Kleimar controlled
fleet, which is mainly used for servicing contracts of
affreightment) for the remaining nine months of 2021 is $15,138 per
day. The above figures do not include the fleet of Navios
Logistics.
Exhibit II provides certain details of the Core
Fleet of Navios Holdings. It does not include the fleet of Navios
Logistics.
Non-GAAP Measures
EBITDA, Adjusted EBITDA, Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’
common stockholders 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 Income/(Loss) attributable to Navios Holdings’
common stockholders and Adjusted Basic Earnings/(Loss) attributable
to Navios Holdings’ common stockholders 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.
Earnings
Highlights
First Quarter
2021 and 2020
Results (in
thousands of
U.S. dollars,
except per share
data and unless
otherwise stated):
The first quarter 2021 and 2020 information
presented below was derived from the unaudited condensed
consolidated financial statements for the respective periods.
|
|
Three Month Period EndedMarch 31,
2021 |
|
|
Three Month Period EndedMarch 31,
2020 |
|
|
(unaudited) |
|
|
(unaudited) |
Revenue |
$ |
116,951 |
|
|
|
$ |
91,083 |
|
|
Net Income/(Loss) attributable
to Navios Holdings’ common stockholders |
$ |
163 |
|
|
|
$ |
(53,275 |
) |
|
Adjusted Net Loss attributable
to Navios Holdings’ common stockholders |
$ |
(5,830 |
) |
(1) |
|
$ |
(23,755 |
) |
(2) |
Net cash used in operating
activities |
$ |
(27,402 |
) |
|
|
$ |
(1,482 |
) |
|
EBITDA |
$ |
54,592 |
|
|
|
$ |
(772 |
) |
|
Adjusted EBITDA |
$ |
48,599 |
|
(1) |
|
$ |
28,748 |
|
(2) |
Basic Loss attributable to
Navios Holdings’ common stockholders per share |
$ |
(0.08 |
) |
|
|
$ |
(4.23 |
) |
|
Adjusted Basic Loss
attributable to Navios Holdings’ common stockholders per share |
$ |
(0.54 |
) |
(1) |
|
$ |
(1.95 |
) |
(3) |
(1) |
Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss
attributable to Navios Holdings’ common stockholders for the three
month period ended March 31, 2021 exclude (i) $26.4 million in
equity income in affiliate companies due to Navios Partners' Merger
effected on March 31, 2021; and (ii) $20.5 million in impairment
losses relating to three drybulk vessels. |
(2) |
Adjusted EBITDA and Adjusted Net Loss attributable to Navios
Holdings’ common stockholders for the three month period ended
March 31, 2020 exclude (i) $11.2 million in impairment losses
relating to two drybulk vessels; (ii) $12.7 million of
other-than-temporary impairment (“OTTI”) loss and impairment losses
of loan receivable in relation to Navios Europe II; and (iii) $5.6
million in non-cash impairment losses incurred by our affiliate
companies relating to their investment in Navios Europe II. |
(3) |
Adjusted Basic Loss attributable to Navios Holdings’ common
stockholders per share for the three month period ended March 31,
2020 excludes the items referred in footnote (2) above as well as a
gain of $0.2 million related to the conversion of accrued dividends
on private preferred stock to common stock. |
Revenue from the Dry Bulk Vessel Operations for
the three month period ended March 31, 2021 increased by $29.5
million, or 86.0%, to $63.7 million, as compared to $34.3 million
for the same period during 2020. The increase in dry bulk revenue
was mainly attributable to the increase in the time charter and
freight market during three month period ended March 31, 2021. The
TCE per day increased by 103.4% to $14,404 per day in the three
month period ended March 31, 2021, as compared to $7,082 per day in
the same period of 2020.
Revenue from the Logistics Business was $53.2
million for the three month period ended March 31, 2021, as
compared to $56.8 million for the same period in 2020. The decrease
was mainly attributable to (i) a $4.6 million decrease in sales of
products mainly due to the decrease in the Paraguayan liquid port's
volume of products sold; (ii) a $2.0 million decrease in revenue
from the cabotage business mainly due to lower time charter rates
due to market conditions and fewer operating days; and (iii) a $0.1
million decrease in revenue from the barge business, mainly due to
a $6.1 million decrease in time charter revenues due to the
expiration of certain legacy time charter contracts, partially
offset by a $6.0 million increase in CoA/voyage revenues, mainly
due to higher CoA/voyage revenues of convoys previously under time
charter contracts. The overall decrease was partially mitigated by
a $3.1 million increase in revenue from the port terminal business,
mainly due to higher volumes transshipped in the grain port
terminal.
Net Income attributable to Navios Holdings’
common stockholders was $0.2 million for the three month period
ended March 31, 2021, as compared to $53.3 million Net Loss
attributable to Navios Holdings’ common stockholders for the same
period in 2020. Net Income attributable to Navios Holdings’ common
stockholders was affected by items described in the table above.
Excluding these items, Adjusted Net Loss attributable to Navios
Holdings’ common stockholders for the three month period ended
March 31, 2021 was $5.8 million, as compared to $23.8 million
Adjusted Net Loss attributable to Navios Holdings’ common
stockholders for the same period in 2020. This decrease in Adjusted
Net Loss was mainly due to (i) a $19.9 million increase in Adjusted
EBITDA as discussed in the paragraph below; (ii) a $1.8 million
decrease in depreciation and amortization; (iii) a $0.8 million
increase in income tax benefit; and (iv) a $0.2 million decrease in
stock-based compensation expense. This overall decrease of
approximately $22.6 million was partially mitigated by (i) a $4.6
million increase in interest expense and finance cost, net, mainly
due to the higher weighted average interest rate of Navios
Logistics due to the issuance of the 10.75% Notes due 2025; and
(ii) a $0.1 million increase in amortization of deferred drydock,
special survey and other capitalized items.
Net Income of Navios Logistics, on a standalone
basis, was $3.2 million for the three month period ended March 31,
2021 as compared to $7.0 million for the same period in 2020.
Adjusted EBITDA of Navios Holdings for the three
month period ended March 31, 2021 increased by $19.9 million to
$48.6 million, as compared to $28.7 million for the same period in
2020. The increase in Adjusted EBITDA was primarily due to (i) a
$25.9 million increase in revenue; (ii) a $8.3 million decrease in
time charter, voyage and logistics business expenses; (iii) a $1.4
million decrease in net income attributable to noncontrolling
interest; and (iv) a $1.3 million decrease in other expense, net.
This overall increase of $36.9 million was partially mitigated by
(i) a $11.2 million gain on bond extinguishment recorded in the
three month period ended March 31, 2020; (ii) a $4.8 million
decrease in equity in net earnings from affiliate companies; and
(iii) a $1.0 million increase in direct vessel expenses (excluding
the amortization of deferred drydock, special survey costs and
other capitalized items).
EBITDA of Navios Logistics, on a standalone
basis, was $23.3 million for the three month period ended March 31,
2021, as compared to $22.2 million for the same period in 2020.
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 ended March 31, 2021
and 2020, respectively.
|
Three Month |
|
Three Month |
|
Period Ended |
|
Period Ended |
|
March 31, |
|
March 31, |
|
2021 |
|
2020 |
|
(Unaudited) |
|
(Unaudited) |
Available Days (1) |
|
4,202 |
|
|
|
4,636 |
|
Operating Days (2) |
|
4,181 |
|
|
|
4,597 |
|
Fleet Utilization (3) |
|
99.5 |
% |
|
|
99.2 |
% |
Equivalent Vessels (4) |
|
47 |
|
|
|
51 |
|
TCE (5) |
$ |
14,404 |
|
|
$ |
7,082 |
|
(1) |
Available days are the total number of days a vessel is controlled
by a company less the aggregate number of days that the vessel is
off-hire due to major repairs or repairs under guarantee, vessel
upgrades, drydocking or special surveys and ballast days relating
to voyages. The shipping industry uses available days to measure
the number of days in a period during which vessels should be
capable of generating revenues. |
(2) |
Operating days are the number of available days in a period less
the aggregate number of days that the vessels are off-hire due to
any reason, including unforeseen circumstances. |
(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. |
(4) |
Equivalent Vessels are defined as the available days of the fleet
divided by the number of the calendar days in the period. |
(5) |
TCE rates are defined as voyage and time charter revenues less
voyage expenses during a period divided by the number of available
days during the period. The TCE rate is a standard shipping
industry performance measure used primarily to present the actual
daily earnings generated by vessels on various types of contracts
for the number of available days of the fleet. |
Conference
Call:
As previously announced, Navios Holdings will
host a conference call today, May 27, 2021, 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, 2021.
A supplemental slide presentation will be
available on the Navios Holdings website at
www.navios.com under the "Investors" section by 8:00 am ET on
the day of the call.
Conference Call details:
Call Date/Time: Thursday, May 27, 2021 at 8:30 am
ETCall Title: Navios Holdings Q1 2021 Financial Results Conference
Call US Dial In: +1.877.480.3873International Dial In:
+1.404.665.9927Conference ID: 214 1308
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: +1.800.585.8367International
Replay Dial In: +1.404.537.3406Conference ID: 214 1308
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 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
dry cargo vessels. For more information, please visit its website
at www.navios-mlp.com.
About Navios
Maritime Acquisition
Corporation
Navios Maritime Acquisition Corporation (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.
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 our ability to refinance our near-term debt
maturities, expected 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 risks relating to:
global and regional economic and political conditions including the
impact of the COVID-19 pandemic and efforts throughout the world to
contain its spread, including effects on global economic activity;
demand for seaborne transportation of the products we ship; the
ability and willingness of charterers to fulfill their obligations
to us; prevailing charter rates; shipyards performing scrubber
installations, drydocking and repairs; changing vessel crews and
availability of financing; potential disruption of shipping routes
due to accidents, diseases, pandemics, political events, piracy or
acts by terrorists, including the impact of the COVID-19 pandemic
and the ongoing efforts throughout the world to contain it;
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, Ultra Handymax and Handysize vessels in
particular; 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 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 or debt securities.
Contact:
Navios Maritime Holdings
Inc.+1-345-232-3067+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 MonthPeriod Ended
March 31, 2021 |
|
|
Three MonthPeriod Ended
March 31, 2020 |
|
|
(unaudited) |
|
|
(unaudited) |
|
Revenue |
$ |
116,951 |
|
|
$ |
91,083 |
|
Time charter, voyage and
logistics business expenses |
|
(38,327 |
) |
|
|
(46,644 |
) |
Direct vessel expenses
(1) |
|
(25,915 |
) |
|
|
(24,731 |
) |
General and administrative
expenses (2) |
|
(6,819 |
) |
|
|
(6,962 |
) |
Depreciation and
amortization |
|
(16,266 |
) |
|
|
(18,076 |
) |
Interest expense and finance
cost, net |
|
(36,200 |
) |
|
|
(31,643 |
) |
Impairment loss/ loss on sale
of vessels, net |
|
(20,455 |
) |
|
|
(11,248 |
) |
Gain on bond extinguishment,
net |
|
— |
|
|
|
11,204 |
|
Other expense, net |
|
(224 |
) |
|
|
(1,561 |
) |
Impairment of loan receivable
from affiliate company |
|
— |
|
|
|
(6,050 |
) |
Loss before equity in
net earnings/(losses) of affiliate companies |
$ |
(27,255 |
) |
|
$ |
(44,628 |
) |
Equity in net earnings/
(losses) of affiliate companies |
|
27,740 |
|
|
|
(6,137 |
) |
Income/ (loss) before
taxes |
$ |
485 |
|
|
$ |
(50,765 |
) |
Income tax benefit |
|
829 |
|
|
|
39 |
|
Net income/
(loss) |
$ |
1,314 |
|
|
$ |
(50,726 |
) |
Less: Net income attributable
to the noncontrolling interest |
|
(1,151 |
) |
|
|
(2,549 |
) |
Net income/ (loss)
attributable to Navios Holdings common stockholders |
$ |
163 |
|
|
$ |
(53,275 |
) |
Loss attributable to
Navios Holdings common stockholders, basic and
diluted |
$ |
(1,114 |
) |
|
$ |
(54,403 |
) |
Basic and diluted
(loss) per share attributable to Navios Holdings common
stockholders |
$ |
(0.08 |
) |
|
$ |
(4.23 |
) |
Weighted average
number of shares, basic and diluted |
|
13,113,385 |
|
|
|
12,862,589 |
|
(1) |
Includes expenses of Navios Logistics of $13.6 million and
$12.2 million for the three month period ended March 31, 2021 and
2020, respectively. |
(2) |
Includes expenses of Navios Logistics of $3.3 million and $3.2
million for the three month period ended March 31, 2021 and 2020,
respectively. |
|
|
NAVIOS MARITIME HOLDINGS
INC.Other Financial Data
|
March 31,
2021 |
|
December 31, 2020 |
|
ASSETS |
|
(unaudited) |
|
|
(unaudited) |
|
Cash and cash equivalents,
including restricted cash |
$ |
60,083 |
|
$ |
111,184 |
|
Vessels, port terminals and other
fixed assets, net |
|
1,082,409 |
|
|
1,139,539 |
|
Goodwill and other
intangibles |
|
257,513 |
|
|
258,899 |
|
Operating lease assets |
|
211,392 |
|
|
227,962 |
|
Other current and non-current
assets |
|
287,398 |
|
|
233,741 |
|
Total
assets |
$ |
1,898,795 |
|
$ |
1,971,325 |
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
Long-term debt, including current portion |
$ |
294,208 |
|
$ |
320,863 |
|
Senior and ship mortgage notes,
net |
|
1,265,610 |
|
|
1,263,566 |
|
Operating lease liabilities,
current portion |
|
74,717 |
|
|
81,415 |
|
Operating lease liabilities, net
of current portion |
|
178,878 |
|
|
193,351 |
|
Other current and non-current
liabilities |
|
118,196 |
|
|
146,413 |
|
Total stockholders’
(deficit)/equity |
|
(32,814 |
) |
|
(34,283 |
) |
Total liabilities and
stockholders’ equity |
$ |
1,898,795 |
|
$ |
1,971,325 |
|
Disclosure of Non-GAAP Financial
Measures
EBITDA, Adjusted EBITDA, Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
and Adjusted Basic Earnings/(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 income/(loss) 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”. 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 financing costs
and gains/(losses) on bond and debt extinguishment, net; (v)
allowance for credit losses; (vi) earnings/(losses) in affiliate
companies, net of dividends received; (vii) payments for drydock,
special survey costs and other capitalized items; (viii)
noncontrolling interest; (ix) gain/ (loss) on sale of assets; (x)
unrealized (loss)/gain on derivatives; (xi) loss on sale and
reclassification to earnings of available-for-sale securities; and
(xii) impairment losses. 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 and meet working capital requirements. 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.
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.
Navios Logistics EBITDA is used to measure its
operating performance.
We present Adjusted Net Income/(Loss)
attributable to Navios Holdings’ common stockholders because we
believe it assists investors and analysts in comparing our
operating performance across reporting periods on a consistent
basis by excluding items that we do not believe are indicative of
our core operating performance. Our presentation of Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
adjusts net income/(loss) attributable to Navios Holdings’ common
stockholders for the items described above under “Earnings
Highlights”. The definition of Adjusted Net Income/(Loss) used here
may not be comparable to that used by other companies due to
differences in methods of calculation.
Adjusted Basic Earnings/(Loss) attributable to
Navios Holdings’ common stockholders per share is defined as
Adjusted Net Income/(Loss) attributable to Navios Holdings’ common
stockholders divided by the weighted average number of shares for
each of the periods presented.
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 Month Period
Ended |
2021 |
|
|
2020 |
|
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net cash used in operating activities |
$ |
(27,402 |
) |
|
$ |
(1,482 |
) |
Net increase/ (decrease) in
operating assets |
|
10,044 |
|
|
|
(4,002 |
) |
Net decrease/ (increase) in
operating liabilities |
|
26,129 |
|
|
|
(15,068 |
) |
Interest expense and finance
cost, net |
|
36,200 |
|
|
|
31,643 |
|
Deferred financing costs |
|
(2,447 |
) |
|
|
(1,828 |
) |
Allowance for credit
losses |
|
(246 |
) |
|
|
(408 |
) |
Equity in affiliate companies,
net of dividends received |
|
27,677 |
|
|
|
(6,799 |
) |
Payments for drydock and
special survey costs |
|
6,243 |
|
|
|
5,815 |
|
Noncontrolling interest |
|
(1,151 |
) |
|
|
(2,549 |
) |
Gain on bond extinguishment,
net |
|
— |
|
|
|
11,204 |
|
Impairment loss/ loss on sale
of vessels, net |
|
(20,455 |
) |
|
|
(11,248 |
) |
Impairment of loan receivable
from affiliate company |
|
— |
|
|
|
(6,050 |
) |
EBITDA |
$ |
54,592 |
|
|
$ |
(772 |
) |
Impairment loss/ loss on sale
of vessels, net |
|
20,455 |
|
|
|
11,248 |
|
Equity in net earnings of
affiliate companies due to Navios Partners' Merger |
|
(26,448 |
) |
|
|
— |
|
Other items from affiliate
companies |
|
— |
|
|
|
5,572 |
|
Impairment of loan receivable
from affiliate company |
|
— |
|
|
|
6,050 |
|
Impairment loss on investment
in affiliate company |
|
— |
|
|
|
6,650 |
|
Adjusted
EBITDA |
$ |
48,599 |
|
|
$ |
28,748 |
|
Three Month
Period Ended |
March 31, 2021 |
|
March 31,2020 |
(in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net cash used in operating activities |
$ |
(27,402 |
) |
|
$ |
(1,482 |
) |
Net cash provided by/(used in)
investing activities |
$ |
20,590 |
|
|
$ |
(56,801 |
) |
Net cash (used in)/provided by
financing activities |
$ |
(44,289 |
) |
|
$ |
34,743 |
|
|
|
|
|
|
|
|
|
Adjusted EBITDA breakdown
|
March 31, |
|
March 31, |
Three Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Core shipping operations |
$ |
25,164 |
|
$ |
2,963 |
Navios Logistics (including
noncontrolling interest) |
|
22,143 |
|
|
19,700 |
Equity in net earnings of
affiliate companies |
|
1,292 |
|
|
6,085 |
Adjusted
EBITDA |
$ |
48,599 |
|
$ |
28,748 |
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation to
Net Income
|
March 31, |
|
March 31, |
Three Month Period
Ended |
2021 |
|
|
2020 |
|
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net income |
$ |
3,181 |
|
|
$ |
7,046 |
|
Depreciation and
amortization |
|
7,469 |
|
|
|
7,278 |
|
Amortization of deferred
drydock and special survey costs |
|
908 |
|
|
|
1,039 |
|
Interest expense and finance
cost, net |
|
12,590 |
|
|
|
6,970 |
|
Income tax benefit |
|
(854 |
) |
|
|
(84 |
) |
EBITDA |
$ |
23,294 |
|
|
$ |
22,249 |
|
|
|
|
|
|
|
|
|
EXHIBIT II
Owned Vessels
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight(in metric tons) |
Navios Serenity (1) |
|
Handysize |
|
2011 |
|
34,690 |
Navios Ulysses |
|
Ultra Handymax |
|
2007 |
|
55,728 |
Navios Celestial |
|
Ultra Handymax |
|
2009 |
|
58,063 |
Navios Vega |
|
Ultra Handymax |
|
2009 |
|
58,792 |
Navios Taurus |
|
Panamax |
|
2005 |
|
76,596 |
Navios Asteriks |
|
Panamax |
|
2005 |
|
76,801 |
N Amalthia |
|
Panamax |
|
2006 |
|
75,318 |
Navios Galileo |
|
Panamax |
|
2006 |
|
76,596 |
N Bonanza |
|
Panamax |
|
2006 |
|
76,596 |
Rainbow N |
|
Panamax |
|
2011 |
|
79,642 |
Jupiter N |
|
Panamax |
|
2011 |
|
93,062 |
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 Canary |
|
Capesize |
|
2015 |
|
180,528 |
Navios Corali |
|
Capesize |
|
2015 |
|
181,249 |
(1) Agreed to be sold.
Long-term Bareboat-in Fleet in
Operation
Vessel Name |
|
Vessel Type |
|
YearBuilt |
|
Deadweight (in metric tons) |
|
PurchaseOption(1) |
Navios Herakles I |
|
Panamax |
|
2019 |
|
82,036 |
|
Yes |
Navios Uranus |
|
Panamax |
|
2019 |
|
81,516 |
|
Yes |
Navios Felicity I |
|
Panamax |
|
2020 |
|
81,946 |
|
Yes |
Navios Galaxy II |
|
Panamax |
|
2020 |
|
81,789 |
|
Yes |
Navios Magellan II |
|
Panamax |
|
2020 |
|
82,037 |
|
Yes |
(1) |
Generally, Navios Holdings may exercise its purchase option after
three to five years of service. |
|
|
Long-term Charter-in Fleet in
Operation
Vessel Name |
|
Vessel Type |
|
YearBuilt |
|
Deadweight (in metric tons) |
|
PurchaseOption(1) |
Navios Lyra |
|
Handysize |
|
2012 |
|
34,718 |
|
Yes (2) |
Navios Venus |
|
Ultra Handymax |
|
2015 |
|
61,339 |
|
Yes |
Navios Marco Polo |
|
Panamax |
|
2011 |
|
80,647 |
|
Yes |
Elsa S |
|
Panamax |
|
2015 |
|
80,954 |
|
No |
Navios Amber |
|
Panamax |
|
2015 |
|
80,994 |
|
Yes |
Navios Sky |
|
Panamax |
|
2015 |
|
82,056 |
|
Yes |
Navios Coral |
|
Panamax |
|
2016 |
|
84,904 |
|
Yes |
Navios Citrine |
|
Panamax |
|
2017 |
|
81,626 |
|
Yes |
Navios Dolphin |
|
Panamax |
|
2017 |
|
81,630 |
|
Yes |
Mont Blanc Hawk |
|
Panamax |
|
2017 |
|
81,638 |
|
No |
Cassiopeia Ocean |
|
Panamax |
|
2018 |
|
82,069 |
|
No |
Navios Gemini |
|
Panamax |
|
2018 |
|
81,704 |
|
No (3) |
Navios Horizon I |
|
Panamax |
|
2019 |
|
81,692 |
|
No (3) |
Navios Koyo |
|
Capesize |
|
2011 |
|
181,415 |
|
- |
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. |
(3) |
Navios Holdings has the right of first refusal and profit share on
sale of vessel. |
|
|
Kleimar Controlled Fleet
Vessel Name |
|
Vessel Type |
|
YearBuilt |
|
Deadweight (in metric tons) |
|
PurchaseOption(1) |
Navios Obeliks |
|
Capesize |
|
2012 |
|
181,415 |
|
Yes |
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