Navios Maritime Holdings Inc. ("Navios Holdings" or "the Company")
(NYSE:NM), a global, vertically integrated seaborne shipping and
logistics company, today reported financial results for the third
quarter and nine months ended September 30, 2017.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
"I am very pleased with our results for the third quarter of 2017,
for which we reported revenues of $120.6 million and adjusted
EBITDA of $31.2 million."
Angeliki Frangou continued: "On November 14, 2017, we
successfully refinanced the 8.125% Senior Unsecured Notes that were
maturing in 15 months, with $305.0 million of 11.25% Senior Secured
Notes. The new notes are callable at any time which provides the
flexibility to refinance these new notes as the dry bulk market and
our financial performance improve.”
HIGHLIGHTS – RECENT DEVELOPMENTS
Successfully Refinanced the 2019 Maturity
On November 14, 2017, Navios Holdings announced the pricing of
$305.0 million 11.25% Senior Secured Notes due 2022 (the “Notes”).
The Notes will be secured by a first priority lien on the capital
stock owned by certain of the subsidiary guarantors of Navios
Holdings in each of Navios Maritime Partners L.P. (“Navios
Partners”), Navios GP L.L.C., Navios Maritime Acquisition
Corporation (“Navios Acquisition”), Navios South American Logistics
Inc. (“Navios Logistics”) and Navios Maritime Containers Inc. The
Notes will be guaranteed by all of the Company’s direct and
indirect subsidiaries, except for certain subsidiaries designated
as unrestricted subsidiaries, including Navios Logistics. The net
proceeds of the offering will be used to complete a cash tender
offer for any and all of Company’s outstanding 8 1⁄8% Senior Notes
due 2019 and to redeem any and all such notes that are not
purchased in the tender offer after all conditions to the tender
offer are satisfied or waived, including the payment of related
fees and expenses and any redemption premium, with any remaining
proceeds to be used for general corporate purposes.
Other debt developments
On November 3, 2017, Navios Holdings prepaid in full the total
outstanding amount borrowed under its secured loan facility with
Navios Acquisition of up to $70.0 million entered into in September
2016 with a payment of $55.1 million and extinguished the secured
loan facility. The prepayment amount consisted of the
$50.0 million drawn under the facility and $5.1 million
of accrued interest.
On November 1, 2017, Navios Holdings agreed to extend $18.3
million outstanding balance under one of its secured credit
facilities originally due by September 2018 for three years to
September 2021.
Navios Logistics
On November 3, 2017, Navios Logistics completed the
borrowing of a new $100.0 million Term Loan B (the “Term Loan B”).
The Term Loan B bears an interest rate of LIBOR plus 475 basis
points and has a four year term with 1.0% amortization per annum.
The Term Loan B is secured by first priority mortgages covering
certain vessels owned by subsidiaries of Navios Logistics, as well
as by assignments of certain receivables. Navios Logistics used
$70.0 million of the proceeds of the Term Loan B to finance a cash
dividend to its equity holders, of which Navios Holdings received
$44.7 million. Navios Logistics intends to use the remaining
proceeds of the Term Loan B: (i) for general corporate
purposes and (ii) to pay fees and expenses relating to the
Term Loan B.
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 8.3
years.
As of November 1, 2017, Navios Holdings has chartered-out 66.6%
and 11.2% of available days for the remaining three months of 2017
and 2018, respectively (excluding index and profit sharing days).
The average contracted daily charter-in rate for the long-term
charter-in vessels for the remaining three months of 2017 is
$12,521.
The above figures do not include the fleet of Navios Logistics
and vessels servicing contracts of affreightment.
Exhibit II provides certain details of the Core Fleet of Navios
Holdings. It does not include the fleet of Navios Logistics.
Earnings Highlights
EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic
Loss per Share are non-U.S. GAAP financial measures and should not
be used in isolation or as substitution for Navios Holdings’
results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, “Disclosure of Non-GAAP
Financial Measures,” for a discussion of EBITDA, Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss per Share of Navios
Holdings (including Navios Logistics), and EBITDA of Navios
Logistics (on a stand-alone basis), and a reconciliation of such
measures to the most comparable measures calculated under U.S.
GAAP.
Third Quarter 2017 and 2016 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The third quarter 2017 and 2016 information presented below was
derived from the unaudited condensed consolidated financial
statements for the respective periods.
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Three MonthPeriod Ended |
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Three MonthPeriod Ended |
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September 30, |
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September 30, |
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2017 |
|
2016 |
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(unaudited) |
|
(unaudited) |
|
Revenue |
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$ |
120,555 |
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$ |
113,087 |
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Net Loss |
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$ |
(28,332 |
) |
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$ |
(27,503 |
) |
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Adjusted Net Loss |
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$ |
(28,332 |
) |
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$ |
(22,420 |
) |
(1 |
) |
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Net cash (used
in)/provided by operating activities |
|
$ |
(12,689 |
) |
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$ |
2,140 |
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EBITDA |
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$ |
31,192 |
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$ |
46,389 |
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Adjusted EBITDA |
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$ |
31,192 |
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$ |
38,465 |
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(1 |
) |
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Basic Loss per
Share |
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$ |
(0.26 |
) |
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$ |
(0.30 |
) |
(1 |
) |
|
Adjusted Basic Loss per
share |
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$ |
(0.26 |
) |
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$ |
(0.25 |
) |
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(1) |
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Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss per Share for the three
months ended September 30, 2016 exclude (i) a $16.0 million gain on
bond extinguishment and (ii) an $8.0 million loss relating to our
share in Navios Partners’ impairment losses. Adjusted Net Loss and
Adjusted Basic Loss per Share for the three months ended September
30, 2016 also exclude a $13.0 million write-off of intangible
assets due to the early redelivery of a charter-in vessel. |
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Revenue from dry bulk vessel operations for the three months
ended September 30, 2017 was $61.0 million as compared to $49.7
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 5.2% to $9,481 per day
in the third quarter of 2017, as compared to $9,010 per day in the
same period of 2016; and (ii) an increase in available days of
our fleet by 579 days, mainly due to an increase in long-term
charter-in fleet available days.
Revenue from the logistics business was $59.6 million for the
three months ended September 30, 2017 as compared to $63.4 million
for the same period in 2016. The decrease was mainly attributable
to (i) a $6.4 million decrease in revenue from the barge business
mainly due to the expiration of certain iron ore transportation
contracts; and (ii) a $0.6 million decrease in revenue from the
cabotage business mainly due to the less operating days. The
overall decrease was partially mitigated by a $3.2 million increase
in revenue from the port terminal business mainly due to the
increase in the volume and tariffs in the dry port terminal and to
the commencement of operations at the new iron ore terminal.
Net Loss of Navios Holdings was $28.3 million and $27.5 million
for the three months ended September 30, 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 September 30, 2017 was $28.3
million as compared to $22.4 million for the same period of 2016.
The $5.9 million increase in Adjusted Net Loss was mainly due to
(i) a decrease in Adjusted EBITDA by $7.3 million; (ii) an increase
in interest expense and finance cost, net by $2.0 million; (iii) an
increase in share-based compensation expense of $0.2 million; and
(iv) an increase in amortization for deferred drydock and special
survey costs of $0.1 million. This overall decrease of $9.6 million
was partially mitigated by (i) a decrease in depreciation and
amortization by $2.2 million; and (ii) a decrease in income tax
expense of $1.5 million.
Net income of Navios Logistics was $1.8 million for the three
month period ended September 30, 2017 as compared to $2.8 million
for the same period in 2016.
Adjusted EBITDA of Navios Holdings for the three months ended
September 30, 2017 decreased by $7.3 million to $31.2 million as
compared to $38.5 million for the same period of 2016. The $7.3
million decrease in Adjusted EBITDA was primarily due to (i) a
$15.0 million increase in time charter, voyage and logistics
business expenses; (ii) a $6.5 million decrease in equity in net
earnings from affiliated companies; and (iii) a $0.3 million
increase in general and administrative expenses (excluding
share-based compensation expenses). This overall decrease of $21.8
million was partially mitigated by (i) a $7.5 million increase in
revenue; (ii) a $4.8 million decrease in direct vessel expenses
(excluding the amortization of deferred drydock and special survey
costs); (iii) a $1.9 million decrease in other expense, net; and
(iv) a $0.3 million decrease in net income attributable to
noncontrolling interest.
EBITDA of Navios Logistics was $18.2 million for the three month
period ended September 30, 2017, as compared to $19.1 million for
the same period in 2016.
Nine Months Ended September 30, 2017 and 2016 Results
(in thousands of U.S. dollars, except per share data and unless
otherwise stated):
The information for the nine month period ended September 30,
2017 and 2016 presented below was derived from the unaudited
condensed consolidated financial statements for the respective
periods.
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Nine Month PeriodEnded |
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Nine Month PeriodEnded |
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September 30, |
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September 30, |
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|
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2017 |
|
2016 |
|
|
|
(unaudited) |
|
(unaudited) |
|
Revenue |
|
$ |
334,519 |
|
|
$ |
320,307 |
|
|
Net Loss |
|
$ |
(114,309 |
) |
|
$ |
(61,384 |
) |
|
Adjusted Net Loss |
|
$ |
(95,391 |
) |
(1 |
) |
$ |
(78,486 |
) |
(2 |
) |
Net cash provided by
operating activities |
|
$ |
36,414 |
|
|
$ |
42,277 |
|
|
EBITDA |
|
$ |
61,144 |
|
|
$ |
122,867 |
|
|
Adjusted EBITDA |
|
$ |
80,062 |
|
(1 |
) |
$ |
100,072 |
|
(2 |
) |
Basic Loss per
Share |
|
$ |
(1.04 |
) |
|
$ |
(0.69 |
) |
|
Adjusted Basic Loss per
share |
|
$ |
(0.89 |
) |
(1 |
) |
$ |
(0.85 |
) |
(2 |
) |
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(1) |
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Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss per Share for the nine
months ended September 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 nine
months ended September 30, 2017 also excludes a gain of $1.1
million following the completion of the Series G and H Exchange
Program and the conversion of accrued dividend of private preferred
stock to common stock. |
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(2) |
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Adjusted EBITDA,
Adjusted Net Loss and Adjusted Basic Loss Per Share for the nine
months ended September 30, 2016 exclude (i) a $16.0 million gain on
bond extinguishment (ii) a $14.9 million compensation from the
early redelivery of a vessel from its charterer and (iii) an $8.0
million loss relating to our share in Navios Partners’ impairment
losses. Adjusted Net Loss and Adjusted Basic Loss per Share for the
nine months ended September 30, 2016 exclude also (i) a $13.0
million write-off of intangible assets due to the early redelivery
of a charter-in vessel and (ii) a $7.3 million income from the
write-off of an intangible liability due to the early redelivery of
the same vessel. |
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Revenue from dry bulk vessel operations for the nine
months ended September 30, 2017 was $171.8 million as compared to
$142.9 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 9.1% to $8,836 per day in the nine month period ended
September 30, 2017 as compared to $8,102 per day in the same period
in 2016; and (ii) an increase in available days of our fleet by
1,191 days, mainly due to an increase in long-term charter-in fleet
available days.
Revenue from the logistics business was $162.8 million for the
nine months ended September 30, 2017 as compared to $177.4 million
for the same period in 2016. The decrease was mainly attributable
to (i) an $18.0 million decrease in revenue from barge business
mainly due to the expiration of certain iron ore transportation
contracts; and (ii) a $5.9 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 $5.5 million increase in revenue due to an increase in tariffs in
the dry port terminal business and the commencement of operations
at the new iron ore terminal; and (ii) a $3.8 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 $114.3 million and $61.4 million
for the nine months ended September 30, 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 nine months ended September 30, 2017 was $95.4
million as compared to $78.5 million for the same period of 2016.
The $16.9 million increase in Adjusted Net Loss was mainly due to
(i) a decrease in Adjusted EBITDA of $20.0 million; (ii) an
increase in interest expense and finance cost, net of $2.5 million;
(iii) an increase of $0.9 million in amortization for deferred
drydock and special survey costs; and (iv) an increase of $0.7
million in share-based compensation expense. This overall increase
of $24.1 million was partially mitigated by (i) a decrease in
depreciation and amortization of $4.8 million; and (ii) a decrease
in income tax expense of $2.4 million.
Net Income of Navios Logistics was $3.3 million for the nine
month period ended September 30, 2017, as compared to $15.8 million
for the same period in 2016.
Adjusted EBITDA of Navios Holdings for the nine month period
ended September 30, 2017 decreased by $20.0 million to $80.1
million as compared to $100.1 million for the same period of 2016.
The $20.0 million decrease in Adjusted EBITDA was primarily due to
(i) a $37.3 million increase in time charter, voyage and logistics
business expenses; and (ii) a $16.7 million decrease in equity in
net earnings from affiliated companies. This overall decrease of
$54.0 million was partially mitigated by (i) a $14.2 million
increase in revenue; (ii) a $8.3 million decrease in direct vessel
expenses (excluding the amortization of deferred drydock and
special survey costs); (iii) a $4.5 million decrease in net income
attributable to the noncontrolling interest; (iv) a $3.7 million
decrease in other expense, net; (v) a $1.7 million gain on debt
extinguishment; (vi) a $1.1 million gain on sale of assets; and
(vii) a $0.5 million decrease in general and administrative
expenses (excluding share-based compensation expenses).
EBITDA of Navios Logistics was $47.5 million for the nine month
period ended September 30, 2017, as compared to $60.9 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 nine month periods ended September 30, 2017 and
2016, respectively.
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Three Month |
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Three Month |
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Nine Month |
|
Nine Month |
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Period Ended |
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Period Ended |
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Period Ended |
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Period Ended |
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September 30, |
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September 30, |
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September 30, |
|
September 30, |
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2017 |
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2016 |
|
2017 |
|
2016 |
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|
(Unaudited) |
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(Unaudited) |
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(Unaudited) |
|
(Unaudited) |
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Available Days (1) |
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5,794 |
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5,215 |
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17,564 |
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16,373 |
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Operating Days (2) |
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5,789 |
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5,206 |
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17,534 |
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16,238 |
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Fleet Utilization
(3) |
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99.9 |
% |
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99.8 |
% |
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99.8 |
% |
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|
99.2 |
% |
|
Equivalent Vessels
(4) |
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|
63 |
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57 |
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64 |
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60 |
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TCE (5) |
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$ |
9,481 |
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$ |
9,010 |
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$ |
8,836 |
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$ |
8,102 |
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(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. |
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Conference Call: As previously announced,
Navios Holdings will host a conference call today, November 21,
2017, at 8:30 am ET, at which time Navios Holdings' senior
management will provide highlights and commentary on earnings
results for the third quarter and nine months ended September 30,
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, November 21, 2017, at 8:30 am ET Call
Title: Navios Holdings Q3 2017 Financial Results Conference Call US
Dial In: +1.877.480.3873 International Dial In: +1.404.665.9927
Conference ID: 9253 6633
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: 9253 6633
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 cash flow generation for the remainder of 2017
and 2018, 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)
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|
|
Three Month Period
Ended September 30,2017 |
|
|
Three Month Period
Ended September 30,2016 |
|
|
Nine Month Period
Ended September 30,2017 |
|
|
Nine MonthPeriod
EndedSeptember 30,2016 |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
Revenue |
|
|
|
|
|
$ |
120,555 |
|
|
|
$ |
113,087 |
|
|
$ |
334,519 |
|
|
|
$ |
320,307 |
|
Administrative fee
revenue from affiliates |
|
|
|
|
|
|
6,284 |
|
|
|
|
5,472 |
|
|
|
16,942 |
|
|
|
|
16,417 |
|
Time charter, voyage
and logistics business expenses |
|
|
|
|
|
|
(56,824 |
) |
|
|
|
(41,846 |
) |
|
|
(161,628 |
) |
|
|
|
(124,322 |
) |
Direct vessel
expenses(1) |
|
|
|
|
|
|
(28,739 |
) |
|
|
|
(33,269 |
) |
|
|
(90,566 |
) |
|
|
|
(98,028 |
) |
General and
administrative expenses incurred on behalf of affiliates |
|
|
|
|
|
|
(6,284 |
) |
|
|
|
(5,472 |
) |
|
|
(16,942 |
) |
|
|
|
(16,417 |
) |
General and
administrative expenses(2) |
|
|
|
|
|
|
(6,711 |
) |
|
|
|
(6,182 |
) |
|
|
(19,203 |
) |
|
|
|
(19,012 |
) |
Depreciation and
amortization |
|
|
|
|
|
|
(26,179 |
) |
|
|
|
(41,432 |
) |
|
|
(77,893 |
) |
|
|
|
(88,391 |
) |
Interest expense and
finance cost, net |
|
|
|
|
|
|
(28,825 |
) |
|
|
|
(26,809 |
) |
|
|
(83,812 |
) |
|
|
|
(81,257 |
) |
Impairment loss on sale
of vessel |
|
|
|
|
|
|
— |
|
|
|
|
— |
|
|
|
(14,239 |
) |
|
|
|
— |
|
Gain on debt/bond
extinguishment |
|
|
|
|
|
|
— |
|
|
|
|
15,956 |
|
|
|
1,715 |
|
|
|
|
15,956 |
|
Other (expense)/income,
net |
|
|
|
|
|
|
(1,912 |
) |
|
|
|
(3,844 |
) |
|
|
(4,790 |
) |
|
|
|
5,290 |
|
Loss before
equity in net earnings ofaffiliated companies |
|
|
|
|
|
|
(28,635 |
) |
|
|
|
(24,339 |
) |
|
|
(115,897 |
) |
|
|
|
(69,457 |
) |
Equity in net
earnings/(loss) of affiliated companies |
|
|
|
|
|
|
901 |
|
|
|
|
(735 |
) |
|
|
2,208 |
|
|
|
|
15,641 |
|
Loss before
taxes |
|
|
|
|
|
$ |
(27,734 |
) |
|
|
$ |
(25,074 |
) |
|
$ |
(113,689 |
) |
|
|
$ |
(53,816 |
) |
Income tax
benefit/(expense) |
|
|
|
|
|
|
69 |
|
|
|
|
(1,413 |
) |
|
|
562 |
|
|
|
|
(1,837 |
|
Net
loss |
|
|
|
|
|
|
(27,665 |
) |
|
|
|
(26,487 |
) |
|
|
(113,127 |
) |
|
|
|
(55,653 |
) |
Less: Net income
attributable to the noncontrolling interest |
|
|
|
|
|
|
(667 |
) |
|
|
|
(1,016 |
) |
|
|
(1,182 |
) |
|
|
|
(5,731 |
) |
Net loss
attributable to NaviosHoldings common
stockholders |
|
|
|
|
|
$ |
(28,332 |
) |
|
|
$ |
(27,503 |
) |
|
$ |
(114,309 |
) |
|
|
$ |
(61,384 |
) |
Loss
attributable to Navios Holdings common
stockholders, basic and diluted |
|
|
|
|
|
$ |
(30,272 |
) |
|
|
$ |
(31,490 |
) |
|
$ |
(121,049 |
) |
|
|
$ |
(73,312 |
) |
Basic and
diluted net losses per share attributable to Navios
Holdings common stockholders |
|
|
|
|
|
$ |
(0.26 |
) |
|
|
$ |
(0.30 |
) |
|
$ |
(1.04 |
) |
|
|
$ |
(0.69 |
) |
Weighted
average number of shares, basic and diluted |
|
|
|
|
|
|
117,535,234 |
|
|
|
|
106,423,653 |
|
|
|
116,260,640 |
|
|
|
|
106,157,410 |
|
|
- Includes expenses of Navios Logistics of $18.4 million and
$21.0 million for the three months ended September 30, 2017 and
2016, respectively and $55.0 million and $59.1 million for the nine
months ended September 30, 2017 and 2016, respectively.
- Includes expenses of Navios Logistics of $4.0 million and $3.4
million for the three months ended September 30, 2017 and 2016,
respectively and $11.7 million and $10.3 million for the nine
months ended September 30, 2017 and 2016, respectively.
NAVIOS
MARITIME HOLDINGS INC.Other Financial
Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,2017 |
|
|
December 31,2016 |
|
|
|
|
|
|
(unaudited) |
|
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents, including restricted cash |
|
|
|
|
|
$ |
119,238 |
|
|
$ |
141,378 |
|
Other current
assets |
|
|
|
|
|
|
113,627 |
|
|
|
131,762 |
|
Deposits for vessels,
port terminals and other fixed assets |
|
|
|
|
|
|
29,271 |
|
|
|
136,891 |
|
Vessels, port terminal
and other fixed assets, net |
|
|
|
|
|
|
1,863,673 |
|
|
|
1,821,101 |
|
Other non-current
assets |
|
|
|
|
|
|
252,867 |
|
|
|
234,612 |
|
Goodwill and other
intangibles |
|
|
|
|
|
|
281,931 |
|
|
|
287,151 |
|
Total
assets |
|
|
|
|
|
$ |
2,660,607 |
|
|
$ |
2,752,895 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities,
including current portion of long-term debt, net |
|
|
|
|
|
|
228,340 |
|
|
|
251,783 |
|
Senior and ship
mortgage notes, net |
|
|
|
|
|
|
1,299,479 |
|
|
|
1,296,537 |
|
Long-term debt, net of
current portion |
|
|
|
|
|
|
310,556 |
|
|
|
324,731 |
|
Other non-current
liabilities |
|
|
|
|
|
|
129,097 |
|
|
|
76,291 |
|
Total stockholders’
equity |
|
|
|
|
|
|
693,135 |
|
|
|
803,553 |
|
Total
liabilities and stockholders’ equity |
|
|
|
|
|
$ |
2,660,607 |
|
|
$ |
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
|
|
|
|
|
September 30, |
|
September 30, |
Three Months
Ended |
2017 |
|
2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net cash (used
in)/provided by operating activities |
$ |
(12,689 |
) |
|
$ |
2,140 |
|
Net increase in
operating assets |
|
8,525 |
|
|
|
8,247 |
|
Net decrease/(increase)
in operating liabilities |
|
4,916 |
|
|
|
(3,381 |
) |
Net interest cost |
|
28,826 |
|
|
|
26,809 |
|
Deferred finance
charges |
|
(1,440 |
) |
|
|
(1,359 |
) |
Recovery/(provision)
for losses on accounts receivable |
|
300 |
|
|
|
(453 |
) |
Equity in affiliates,
net of dividends received |
|
427 |
|
|
|
(4,857 |
) |
Payments for drydock
and special survey costs |
|
2,970 |
|
|
|
4,303 |
|
Noncontrolling
interest |
|
(667 |
) |
|
|
(1,016 |
) |
Other gain on
assets |
|
24 |
|
|
|
— |
|
Gain on bond
extinguishment |
|
— |
|
|
|
15,956 |
|
EBITDA |
$ |
31,192 |
|
|
$ |
46,389 |
|
Gain on bond
extinguishment |
|
— |
|
|
|
(15,956 |
) |
Other items from
affiliates |
|
— |
|
|
|
8,032 |
|
Adjusted
EBITDA |
$ |
31,192 |
|
|
$ |
38,465 |
|
|
|
|
|
|
Three
MonthPeriod EndedSeptember 30,
2017 |
|
Three MonthPeriod EndedSeptember 30,
2016 |
|
(unaudited) |
|
(unaudited) |
Net cash
(used in)/provided by operating activities |
$ |
(12,689 |
) |
|
$ |
2,140 |
|
Net cash
provided by/(used in) investing activities |
$ |
2,891 |
|
|
$ |
(17,090 |
) |
Net cash
(used in)/provided by financing activities |
$ |
(6,212 |
) |
|
$ |
32,976 |
|
|
|
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
|
|
|
|
September 30, |
|
September 30, |
Three Months
Ended |
2017 |
|
2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net income |
$ |
1,844 |
|
|
$ |
2,807 |
Depreciation and
amortization |
|
7,156 |
|
|
|
7,679 |
Amortization of
deferred drydock and special survey costs |
|
1,867 |
|
|
|
1,680 |
Interest expense and
finance cost, net |
|
7,446 |
|
|
|
5,638 |
Income tax
(benefit)/expense |
|
(135 |
) |
|
|
1,341 |
EBITDA |
$ |
18,178 |
|
|
$ |
19,145 |
|
|
|
|
|
|
|
Navios Holdings Reconciliation of EBITDA and Adjusted
EBITDA to Cash from Operations
|
|
|
|
|
September 30, |
|
September 30, |
Nine Months
Ended |
2017 |
|
2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net cash provided by
operating activities |
$ |
36,414 |
|
|
$ |
42,277 |
|
Net (decrease)/increase
in operating assets |
|
(33,790 |
) |
|
|
20,023 |
|
Net increase in
operating liabilities |
|
(12,103 |
) |
|
|
(36,537 |
) |
Net interest cost |
|
83,812 |
|
|
|
81,257 |
|
Deferred finance
charges |
|
(4,294 |
) |
|
|
(4,054 |
) |
Recovery/(provision)
for losses on accounts receivable |
|
276 |
|
|
|
(602 |
) |
Equity in affiliates,
net of dividends received |
|
(6,564 |
) |
|
|
3,248 |
|
Payments for drydock
and special survey costs |
|
10,024 |
|
|
|
7,375 |
|
Noncontrolling
interest |
|
(1,182 |
) |
|
|
(5,731 |
) |
Other gain on
assets |
|
1,075 |
|
|
|
— |
|
Gain on debt/bond
extinguishment |
|
1,715 |
|
|
|
15,956 |
|
Impairment loss on sale
of vessel |
|
(14,239 |
) |
|
|
— |
|
Loss on sale and
reclassification to earnings ofavailable for sale securities |
|
— |
|
|
|
(345 |
) |
EBITDA |
$ |
61,144 |
|
|
$ |
122,867 |
|
Impairment loss on sale
of vessels |
|
14,239 |
|
|
|
— |
|
Gain on bond
extinguishment |
|
— |
|
|
|
(15,956 |
) |
Other items from
affiliates |
|
4,679 |
|
|
|
8,032 |
|
Compensation from early
redelivery of a vessel fromits charterer |
|
— |
|
|
|
(14,871 |
) |
Adjusted
EBITDA |
$ |
80,062 |
|
|
$ |
100,072 |
|
|
|
|
|
|
Nine MonthPeriod EndedSeptember 30,
2017 |
|
Nine MonthPeriod EndedSeptember 30,
2016 |
|
(unaudited) |
|
(unaudited) |
Net cash
provided by operating activities |
$ |
36,414 |
|
|
$ |
42,277 |
|
Net cash
used in investing activities |
$ |
(32,987 |
) |
|
$ |
(129,409 |
) |
Net cash
(used in)/provided by financing activities |
$ |
(25,221 |
) |
|
$ |
82,275 |
|
|
|
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
|
|
|
|
September 30, |
|
September 30, |
Nine Months
Ended |
2017 |
|
2016 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net income |
$ |
3,267 |
|
|
$ |
15,843 |
|
Depreciation and
amortization |
|
19,624 |
|
|
|
20,740 |
|
Amortization of
deferred drydock and special survey costs |
|
5,874 |
|
|
|
5,065 |
|
Interest expense and
finance cost, net |
|
19,522 |
|
|
|
17,671 |
|
Income tax
(benefit)/expense |
|
(763 |
) |
|
|
1,623 |
|
EBITDA |
$ |
47,524 |
|
|
$ |
60,942 |
|
|
|
|
|
|
|
|
|
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 metric tons) |
|
Purchase Option(1) |
|
Navios
Lyra |
|
Handysize |
|
2012 |
|
34,718 |
|
Yes
(2) |
|
Navios
Primavera |
|
Ultra
Handymax |
|
2007 |
|
53,464 |
|
Yes |
|
Mercury
Ocean |
|
Ultra
Handymax |
|
2008 |
|
53,452 |
|
No |
|
Kouju
Lily |
|
Ultra
Handymax |
|
2011 |
|
58,872 |
|
No |
|
Navios
Oriana |
|
Ultra
Handymax |
|
2012 |
|
61,442 |
|
Yes |
|
Navios
Mercury |
|
Ultra
Handymax |
|
2013 |
|
61,393 |
|
Yes |
|
Navios
Venus |
|
Ultra
Handymax |
|
2015 |
|
61,339 |
|
Yes |
|
Osmarine |
|
Panamax |
|
2006 |
|
76,000 |
|
No |
|
Navios
Aldebaran |
|
Panamax |
|
2008 |
|
76,500 |
|
Yes |
|
KM
Imabari |
|
Panamax |
|
2009 |
|
76,619 |
|
No |
|
Navios
Marco Polo |
|
Panamax |
|
2011 |
|
80,647 |
|
Yes |
|
Navios
Southern Star |
|
Panamax |
|
2013 |
|
82,224 |
|
Yes |
|
Sea
Victory |
|
Panamax |
|
2014 |
|
77,095 |
|
Yes |
|
Navios
Sky |
|
Panamax |
|
2015 |
|
82,056 |
|
Yes |
|
Navios
Amber |
|
Panamax |
|
2015 |
|
80,994 |
|
Yes |
|
Navios
Coral |
|
Panamax |
|
2016 |
|
84,904 |
|
Yes |
|
Navios
Dolphin |
|
Panamax |
|
2017 |
|
81,630 |
|
Yes |
|
Navios
Citrine |
|
Panamax |
|
2017 |
|
81,626 |
|
Yes |
|
Equator
Prosper |
|
Capesize |
|
2000 |
|
170,000 |
|
No |
|
Pacific
Explorer |
|
Capesize |
|
2007 |
|
177,000 |
|
No |
|
King
Ore |
|
Capesize |
|
2010 |
|
176,800 |
|
Yes |
|
Navios
Koyo |
|
Capesize |
|
2011 |
|
181,415 |
|
Yes |
|
Navios
Obeliks |
|
Capesize |
|
2012 |
|
181,415 |
|
Yes |
|
Dream
Coral |
|
Capesize |
|
2015 |
|
181,249 |
|
Yes |
|
Dream
Canary |
|
Capesize |
|
2015 |
|
180,528 |
|
Yes |
|
Navios
Felix |
|
Capesize |
|
2016 |
|
181,221 |
|
Yes |
|
|
|
|
|
|
|
|
|
|
|
(1) Generally, Navios Holdings may exercise its
purchase option after three to five years of service. |
(2) Navios Holdings holds the initial 50%
purchase option on the vessel. |
|
|
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