Revenue
Navios Maritime Holdings Inc. ("Navios Holdings" or "the Company")
(NYSE:NM), a global, vertically integrated seaborne shipping and
logistics company, today reported financial results for the second
quarter and six months ended June 30, 2018.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
"I am pleased with the results of Q2 and H1 of 2018, for which we
reported Adjusted EBITDA of $43.2 million and $71.3 million,
respectively. Our Adjusted EBITDA was 38% and 46% higher than
the second quarter of 2017 and the first half of 2017
respectively."
Angeliki Frangou continued, "Navios controls 70 dry bulk vessels
with an average age of 7.8 years. Over the past 18 months, we
renewed and expanded our fleet, decreasing fleet age by 15% and
increasing fleet size by 9%. Much of this we accomplished using
minimal capital by increasing our charter-in fleet, often with
purchase options. We are now experiencing the positive effects of
healthier charter markets on our business results."
HIGHLIGHTS – RECENT DEVELOPMENTS
Fleet Update
In August 2018, Navios Holdings exercised the option to acquire
Navios Primavera, a 2007-built, 53,464 dwt chartered-in vessel for
an estimated purchase price of approximately $10.5 million to be
determined on the actual delivery date of the vessel, which is
expected within the fourth quarter of 2018.
In August 2018, Navios Holdings agreed to charter-in one
Kamsarmax vessel under a ten-year bareboat charter with a purchase
option. This vessel is expected to be delivered in the second
quarter of 2020. The transaction is subject to completion of
definitive documentation.
In July 2018, Navios Holdings agreed to sell the Navios Mars, a
2016-built Capesize vessel of 181,259 dwt, and the Navios Sphera, a
2016-built Panamax vessel of 84,872 dwt, to its affiliate Navios
Maritime Partners L.P. (“Navios Partners”) for a sale price of
$79.0 million.
Part of the sale proceeds will be used for the full prepayment
of the $31.8 million outstanding bank debt of the two vessels,
while the remaining $47.2 million will be cash on our balance
sheet. The vessels are expected to be delivered to Navios Partners
within the third quarter of 2018.
In July 2018, Navios Holdings completed the sale to an unrelated
party of the Navios Achilles, a 2001-built Ultra-Handymax vessel of
52,063 dwt for a total net sale price of $8.1 million, paid in
cash.
Following fleet activities during the period 2017-2018YTD, the
average age of Navios Holdings’ fleet has decreased by 15%, basis
fully delivered fleet, and the capacity of the fleet has increased
by 9%.
- Capturing market recovery
Navios Holdings controls a fleet of 70 vessels totaling 7.1
million dwt, of which 35 are owned and 35 are chartered-in under
long-term charters (collectively, the "Core Fleet"). The fleet
consists of 20 Capesize, 32 Panamax, 16 Ultra-Handymax and two
Handysize vessels, with an average age of 7.8 years, basis fully
delivered fleet.
Navios Holdings has 22,831 total available days for 2018
(excluding the fleet of Navios Logistics and vessels servicing
contracts of affreightment) and 11,482 available days for H2
2018.
The average TCE rate we achieved for the second quarter of 2018
was $11,791 per day, 29% higher than the same quarter of last year.
For the second half of 2018, we achieved a TCE of $11,412 per day,
34% higher than the first half of 2017.
As of August 16, 2018, Navios Holdings has chartered-out 87.5%
of available days for the remaining six months of 2018, out of
which 50.1% on fixed rate and 37.4% on index or profit sharing. The
above figures do not include the fleet of Navios Logistics and
vessels servicing contracts of affreightment.
Exhibit II provides certain details of the Core Fleet of Navios
Holdings. It does not include the fleet of Navios Logistics.
Earnings Highlights
EBITDA, Adjusted EBITDA, Adjusted Net Loss and
Adjusted Basic Loss per Share are non-U.S. GAAP financial measures
and should not be used in isolation or as substitution for Navios
Holdings’ results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, “Disclosure of
Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted
EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share of
Navios Holdings (including Navios Logistics), and EBITDA of Navios
Logistics (on a stand-alone basis), and a reconciliation of such
measures to the most comparable measures calculated under U.S.
GAAP.
Second Quarter 2018 and 2017 Results (in
thousands of U.S. dollars, except per share data and unless
otherwise stated):
The second quarter 2018 and 2017 information
presented below was derived from the unaudited condensed
consolidated financial statements for the respective periods.
|
|
Three Month Period Ended |
|
Three Month Period
Ended |
|
|
|
June 30, |
|
June 30, |
|
|
|
2018 |
|
2017 |
|
|
|
(unaudited) |
|
(unaudited) |
|
Revenue |
|
$ |
132,051 |
|
|
$ |
118,618 |
|
|
|
Net
Loss |
|
$ |
(25,292 |
) |
|
$ |
(37,258 |
) |
|
|
Adjusted
Net Loss |
|
$ |
(18,697 |
) |
(1 |
) |
$ |
(27,438 |
) |
(2 |
) |
|
Net cash
provided by operating activities |
|
$ |
11,708 |
|
|
$ |
20,519 |
|
|
|
EBITDA |
|
$ |
36,636 |
|
|
$ |
21,518 |
|
|
|
Adjusted
EBITDA |
|
$ |
43,231 |
|
(1 |
) |
$ |
31,338 |
|
(2 |
) |
|
Basic Loss
per Share |
|
$ |
(0.23 |
) |
|
$ |
(0.34 |
) |
|
|
Adjusted
Basic Loss per Share |
|
$ |
(0.18 |
) |
(1 |
) |
$ |
(0.26 |
) |
(2 |
) |
|
(1) |
Adjusted EBITDA, Adjusted
Net Loss and Adjusted Basic Loss per Share for the three months
ended June 30, 2018 exclude a $6.6 million impairment loss relating
to the sale of Navios Achilles. |
(2) |
Adjusted EBITDA, Adjusted
Net Loss and Adjusted Basic Loss per Share for the three months
ended June 30, 2017 exclude (i) a $5.1 million impairment loss
relating to the sale of Navios Horizon and (ii) $4.7 million
non-cash impairment losses relating to our affiliates. Adjusted
Basic Loss per Share for the three months ended June 30, 2017 also
excludes a gain of $0.5 million following the completion of the
Series G and H Exchange Program. |
Revenue from dry bulk vessel operations for the three months
ended June 30, 2018 was $72.0 million, as compared to $59.2 million
for the same period during 2017. The increase in dry bulk revenue
was mainly attributable to the increase in the time charter
equivalent (“TCE”) per day by 28.7% to $11,791 per day in the
second quarter of 2018, as compared to $9,163 per day in the same
period of 2017.
Revenue from the logistics business was $60.1
million for the three months ended June 30, 2018, as compared to
$59.4 million for the same period in 2017. The increase was mainly
attributable to (i) a $8.2 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 $0.5 million increase in
sales of products mainly due to an increase in the Paraguayan
liquid port's price of products sold. The overall increase was
partially mitigated by (i) a $4.0 million decrease in revenue from
the barge business mainly related to liquid cargo transportation
and (ii) a $4.0 million decrease in revenue from the cabotage
business mainly due to a decrease in operating days.
Net Loss of Navios Holdings was $25.3 million
for the three months ended June 30, 2018, as compared to $37.3
million for the same period in 2017. Net Loss was affected by items
described in the table above. Excluding these items, Adjusted Net
Loss of Navios Holdings for the three months ended June 30, 2018
was $18.7 million, as compared to $27.4 million for the same period
in 2017. The $8.7 million decrease in Adjusted Net Loss was mainly
due to (i) an increase in Adjusted EBITDA by $11.9 million; (ii) a
decrease in depreciation and amortization by $1.6 million; (iii) a
decrease in amortization for deferred drydock and special survey
costs of $0.6 million; and (iv) an increase in income tax benefit
of $0.4 million. This overall decrease of $14.5 million was
partially mitigated by (i) an increase in interest expense and
finance cost, net by $5.7 million; and (ii) an increase in
share-based compensation expense of $0.1 million.
Net Income of Navios Logistics was $4.0 million
for the three month period ended June 30, 2018, as compared to $4.4
million for the same period in 2017.
Adjusted EBITDA of Navios Holdings for the three
months ended June 30, 2018 increased by $11.9 million to $43.2
million, as compared to $31.3 million for the same period in 2017.
The increase in Adjusted EBITDA was primarily due to (i) a $13.5
million increase in revenue; (ii) a $6.5 million decrease in direct
vessel expenses (excluding the amortization of deferred drydock and
special survey costs); (iii) a $0.2 million decrease in time
charter, voyage and logistics business expenses; and (iv) a $0.2
million decrease in net income attributable to noncontrolling
interest. This overall increase of $20.4 million was partially
mitigated by (i) a $3.9 million decrease in equity in net earnings
from affiliated companies; (ii) a $2.2 million increase in general
and administrative expenses (excluding share-based compensation
expenses); (iii) a $1.7 million decrease in gain on debt
extinguishment; and (iv) a $0.7 million increase in other expense,
net.
EBITDA of Navios Logistics was $22.4 million for
the three month period ended June 30, 2018, as compared to $19.3
million for the same period in 2017.
First Half of 2018 and 2017 Results (in
thousands of U.S. dollars, except per share data and unless
otherwise stated):
The information for the six month period ended
June 30, 2018 and 2017 presented below was derived from the
unaudited condensed consolidated financial statements for the
respective periods.
|
|
Six Month
PeriodEnded |
|
Six Month
PeriodEnded |
|
|
|
June 30, |
|
June 30, |
|
|
|
2018 |
|
2017 |
|
|
|
(unaudited) |
|
(unaudited) |
|
Revenue |
|
$ |
248,933 |
|
|
$ |
213,964 |
|
|
Net Loss |
|
$ |
(66,149 |
) |
|
$ |
(85,977 |
) |
|
Adjusted Net Loss |
|
$ |
(52,839 |
) |
(1 |
) |
$ |
(67,059 |
) |
(2 |
) |
Net cash provided by
operating activities |
|
$ |
29,514 |
|
|
$ |
46,204 |
|
|
EBITDA |
|
$ |
58,019 |
|
|
$ |
29,952 |
|
|
Adjusted EBITDA |
|
$ |
71,329 |
|
(1 |
) |
$ |
48,870 |
|
(2 |
) |
Basic Loss per
Share |
|
$ |
(0.60 |
) |
|
$ |
(0.79 |
) |
|
Adjusted Basic Loss per
Share |
|
$ |
(0.49 |
) |
(1 |
) |
$ |
(0.63 |
) |
(2 |
) |
(1) |
Adjusted EBITDA, Adjusted
Net Loss and Adjusted Basic Loss per Share for the six months ended
June 30, 2018 exclude a $13.3 million impairment loss relating to
the sale of Navios Herakles and Navios Achilles. |
(2) |
Adjusted EBITDA, Adjusted
Net Loss and Adjusted Basic Loss per Share for the six months ended
June 30, 2017 exclude (i) a $14.2 million impairment loss relating
to the sale of Navios Ionian and Navios Horizon and (ii) $4.7
million non-cash impairment losses relating to our affiliates.
Adjusted Basic Loss per Share for the six months ended June 30,
2017 also excludes a gain of $0.5 million following the completion
of the Series G and H Exchange Program. |
Revenue from dry bulk vessel operations for the six months ended
June 30, 2018 was $136.6 million, as compared to $110.8 million for
the same period in 2017. The increase in dry bulk revenue was
mainly attributable to the increase in TCE per day by 34.0% to
$11,412 per day in the first half of 2018, as compared to $8,519
per day in the same period in 2017.
Revenue from the logistics business was $112.3
million for the six months ended June 30, 2018, as compared to
$103.2 million for the same period in 2017. The increase was mainly
attributable to (i) a $17.0 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 $0.9 million increase in
sales of products mainly due to an increase in the price of
products sold in the Paraguayan liquid port. The overall increase
was partially mitigated by (i) a $6.1 million decrease in revenue
from the barge business mainly related to liquid cargo
transportation and (ii) a $2.7 million decrease in revenue from the
cabotage business mainly due to fewer operating days and lower
rates.
Net Loss of Navios Holdings was $66.1 million
for six months ended June 30, 2018, as compared to $86.0 million
for the same period in 2017. Net Loss was affected by items
described in the table above. Excluding these items, Adjusted Net
Loss of Navios Holdings for six months ended June 30, 2018 was
$52.8 million, as compared to $67.1 million for the same period in
2017. The $14.3 million decrease in Adjusted Net Loss was mainly
due to (i) an increase in Adjusted EBITDA of $22.4 million; (ii) a
decrease in depreciation and amortization of $1.1 million; (iii) a
decrease of $0.7 million in amortization for deferred drydock and
special survey costs; and (iv) an increase in income tax benefit of
$0.4 million. This overall decrease was partially offset by (i) an
increase in interest expense and finance cost, net of $10.1
million; and (ii) an increase of $0.2 million in share-based
compensation expense.
Net Income of Navios Logistics was $2.9 million
for the six month period ended June 30, 2018, as compared to $1.4
million for the same period in 2017.
Adjusted EBITDA of Navios Holdings for the six
months ended June 30, 2018 increased by $22.4 million to $71.3
million, as compared to $48.9 million for the same period in 2017.
The $22.4 million increase in Adjusted EBITDA was primarily due to
(i) a $34.9 million increase in revenue; and (ii) a $12.6 million
decrease in direct vessel expenses (excluding the amortization of
deferred drydock and special survey costs). This overall increase
was partially offset by (i) a $15.5 million decrease in equity in
net earnings from affiliated companies; (ii) a $4.2 million
increase in other expense, net; (iii) a $2.5 million increase in
general and administrative expenses (excluding share-based
compensation expenses); (iv) a $1.7 million decrease in gain on
debt extinguishment; (v) a $0.6 million increase in time charter,
voyage and logistics business expenses; and (vi) a $0.6 million
increase in net income attributable to the noncontrolling
interest.
EBITDA of Navios Logistics was $39.2 million for
the six month period ended June 30, 2018, as compared to $29.3
million for the same period in 2017.
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 and six month periods ended June
30, 2018 and 2017, respectively.
|
Three Month |
|
Three Month |
|
Six Month |
|
Six Month |
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Available Days (1) |
|
5,810 |
|
|
5,968 |
|
|
11,349 |
|
|
11,771 |
Operating Days (2) |
|
5,800 |
|
|
5,963 |
|
|
11,315 |
|
|
11,752 |
Fleet Utilization
(3) |
|
99.8% |
|
|
99.9% |
|
|
99.7% |
|
|
99.8% |
Equivalent Vessels
(4) |
|
64 |
|
|
66 |
|
|
63 |
|
|
65 |
TCE (5) |
$ |
11,791 |
|
$ |
9,163 |
|
$ |
11,412 |
|
$ |
8,519 |
(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 and
ballast days relating to voyages. 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, August 23, 2018, at 8:30 am ET, at
which time Navios Holdings' senior management will provide
highlights and commentary on earnings results for the second
quarter and six months ended June 30, 2018.
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, August 23, 2018, at
8:30 am ET Call Title: Navios Holdings Q2 2018 Financial Results
Conference Call US Dial In: +1.877.480.3873 International Dial In:
+1.404.665.9927 Conference ID: 523 9529
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: 523 9529
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 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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month Period
Ended June 30, 2018 |
|
|
Three Month Period
Ended June 30, 2017 |
|
|
Six MonthPeriod
Ended June 30, 2018 |
|
|
Six Month Period
Ended June 30, 2017 |
|
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
Revenue |
$ |
132,051 |
|
|
|
$ |
118,618 |
|
|
$ |
248,933 |
|
|
|
$ |
213,964 |
|
Administrative fee
revenue from affiliates |
|
7,126 |
|
|
|
|
5,360 |
|
|
|
14,131 |
|
|
|
|
10,658 |
|
Time charter, voyage
and logistics business expenses |
|
(53,888 |
) |
|
|
|
(54,078 |
) |
|
|
(105,383 |
) |
|
|
|
(104,804 |
) |
Direct vessel
expenses(1) |
|
(24,533 |
) |
|
|
|
(31,783 |
) |
|
|
(48,797 |
) |
|
|
|
(61,827 |
) |
General and
administrative expenses incurred on behalf of affiliates |
|
(7,126 |
) |
|
|
|
(5,360 |
) |
|
|
(14,131 |
) |
|
|
|
(10,658 |
) |
General and
administrative expenses(2) |
|
(8,327 |
) |
|
|
|
(6,108 |
) |
|
|
(15,254 |
) |
|
|
|
(12,492 |
) |
Depreciation and
amortization |
|
(24,537 |
) |
|
|
|
(26,091 |
) |
|
|
(50,603 |
) |
|
|
|
(51,714 |
) |
Interest expense and
finance cost, net |
|
(33,253 |
) |
|
|
|
(27,565 |
) |
|
|
(65,063 |
) |
|
|
|
(54,987 |
) |
Impairment losses |
|
(6,595 |
) |
|
|
|
(5,141 |
) |
|
|
(13,310 |
) |
|
|
|
(14,239 |
) |
Gain on debt
extinguishment |
|
— |
|
|
|
|
1,715 |
|
|
|
— |
|
|
|
|
1,715 |
|
Other expense, net |
|
(2,242 |
) |
|
|
|
(1,523 |
) |
|
|
(7,061 |
) |
|
|
|
(2,878 |
) |
Loss before
equity in net earnings of affiliated companies |
|
(21,324 |
) |
|
|
|
(31,956 |
) |
|
|
(56,538 |
) |
|
|
|
(87,262 |
) |
Equity in net (losses)/
earnings of affiliated companies |
|
(3,025 |
) |
|
|
|
(3,775 |
) |
|
|
(9,489 |
) |
|
|
|
1,307 |
|
Loss before
taxes |
$ |
(24,349 |
) |
|
|
$ |
(35,731 |
) |
|
$ |
(66,027 |
) |
|
|
$ |
(85,955 |
) |
Income tax benefit |
|
502 |
|
|
|
|
76 |
|
|
|
944 |
|
|
|
|
493 |
|
Net
loss |
|
(23,847 |
) |
|
|
|
(35,655 |
) |
|
|
(65,083 |
) |
|
|
|
(85,462 |
) |
Less: Net income
attributable to the noncontrolling interest |
|
(1,445 |
) |
|
|
|
(1,603 |
) |
|
|
(1,066 |
) |
|
|
|
(515 |
) |
Net loss
attributable to NaviosHoldings common
stockholders |
$ |
(25,292 |
) |
|
|
$ |
(37,258 |
) |
|
$ |
(66,149 |
) |
|
|
$ |
(85,977 |
) |
Loss
attributable to Navios Holdings common
stockholders, basic and diluted |
$ |
(27,856 |
) |
|
|
$ |
(39,414 |
) |
|
$ |
(71,262 |
) |
|
|
$ |
(90,777 |
) |
Basic and
diluted net losses per share attributable to Navios Holdings common
stockholders |
$ |
(0.23 |
) |
|
|
$ |
(0.34 |
) |
|
$ |
(0.60 |
) |
|
|
$ |
(0.79 |
) |
Weighted
average number of shares, basic and diluted |
|
119,423,135 |
|
|
|
|
116,051,809 |
|
|
|
119,422,969 |
|
|
|
|
115,612,780 |
|
(1) |
Includes expenses of
Navios Logistics of $14.6 million and $19.1 million for the three
months ended June 30, 2018 and 2017, respectively and $29.4 million
and $36.6 million for the six months ended June 30, 2018 and 2017,
respectively. |
(2) |
Includes expenses of
Navios Logistics of $4.0 million and $4.1 million for the three
months ended June 30, 2018 and 2017, respectively and $7.9 million
and $7.6 million for six months ended June 30, 2018 and 2017,
respectively. |
NAVIOS MARITIME HOLDINGS
INC.Other Financial Data
|
|
|
|
|
|
|
|
|
|
June 30,
2018 |
|
|
|
December 31,2017 |
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash
equivalents, including restricted cash |
$ |
121,432 |
|
|
$ |
134,190 |
|
Other current
assets |
|
130,272 |
|
|
|
121,886 |
|
Deposits for vessels,
port terminals and other fixed assets |
|
8,255 |
|
|
|
36,849 |
|
Vessels, port terminal
and other fixed assets, net |
|
1,788,936 |
|
|
|
1,809,225 |
|
Other non-current
assets |
|
250,207 |
|
|
|
251,073 |
|
Goodwill and other
intangibles |
|
274,026 |
|
|
|
276,758 |
|
Total
assets |
$ |
2,573,128 |
|
|
$ |
2,629,981 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
Current liabilities,
including current portion of long-term debt, net |
|
247,470 |
|
|
|
236,194 |
|
Senior and ship
mortgage notes, net |
|
1,304,608 |
|
|
|
1,301,999 |
|
Long-term debt, net of
current portion |
|
330,870 |
|
|
|
346,604 |
|
Other non-current
liabilities |
|
135,779 |
|
|
|
128,020 |
|
Total stockholders’
equity |
|
554,401 |
|
|
|
617,164 |
|
Total
liabilities and stockholders’ equity |
$ |
2,573,128 |
|
|
$ |
2,629,981 |
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
June 30, |
|
June 30, |
Three Months
Ended |
2018 |
|
2017 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net cash provided by
operating activities |
$ |
11,708 |
|
|
$ |
20,519 |
|
Net increase/(decrease)
in operating assets |
|
5,711 |
|
|
|
(11,280 |
) |
Net increase in
operating liabilities |
|
(146 |
) |
|
|
(2,329 |
) |
Net interest cost |
|
33,253 |
|
|
|
27,564 |
|
Deferred finance
charges |
|
(2,003 |
) |
|
|
(1,465 |
) |
(Provision)/ recovery
for losses on accounts receivable |
|
(379 |
) |
|
|
230 |
|
Equity in affiliates,
net of dividends received |
|
(4,384 |
) |
|
|
(7,812 |
) |
Payments for drydock
and special survey costs |
|
916 |
|
|
|
1,099 |
|
Noncontrolling
interest |
|
(1,445 |
) |
|
|
(1,603 |
) |
Other gain on
assets |
|
— |
|
|
|
21 |
|
Impairment loss on sale
of vessels |
|
(6,595 |
) |
|
|
(5,141 |
) |
Gain on debt
extinguishment |
|
— |
|
|
|
1,715 |
|
EBITDA |
$ |
36,636 |
|
|
$ |
21,518 |
|
Impairment loss on sale
of vessels |
|
6,595 |
|
|
|
5,141 |
|
Other items from
affiliates |
|
— |
|
|
|
4,679 |
|
Adjusted
EBITDA |
$ |
43,231 |
|
|
$ |
31,338 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Month
Period Ended(in thousands of U.S.
dollars) |
June 30,
2018 |
|
June 30,
2017 |
|
(unaudited) |
|
(unaudited) |
Net cash provided by
operating activities |
$ |
11,708 |
|
|
$ |
20,519 |
|
Net cash used in
investing activities |
$ |
(5,250 |
) |
|
$ |
(12,901 |
) |
Net cash used in
financing activities |
$ |
(6,879 |
) |
|
$ |
(11,138 |
) |
|
|
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation
to Net income
|
|
|
|
|
June 30, |
|
June 30, |
Three Months
Ended |
2018 |
|
2017 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net income |
$ |
3,994 |
|
|
$ |
4,430 |
|
Depreciation and
amortization |
|
7,152 |
|
|
|
6,378 |
|
Amortization of
deferred drydock and special survey costs |
|
1,831 |
|
|
|
2,309 |
|
Interest expense and
finance cost, net |
|
9,997 |
|
|
|
6,295 |
|
Income tax benefit |
|
(569 |
) |
|
|
(144 |
) |
EBITDA |
$ |
22,405 |
|
|
$ |
19,268 |
|
|
|
|
|
|
|
|
|
Navios Holdings Reconciliation of EBITDA
and Adjusted EBITDA to Cash from Operations
|
|
|
|
|
|
June 30, |
|
|
June 30, |
Six Months
Ended |
2018 |
|
|
2017 |
|
(in thousands
of U.S. dollars) |
(unaudited) |
|
|
(unaudited) |
|
|
|
|
|
|
Net cash provided by
operating activities |
$ |
29,514 |
|
|
$ |
46,204 |
|
Net increase/(decrease)
in operating assets |
|
9,333 |
|
|
|
(39,416 |
) |
Net increase in
operating liabilities |
|
(21,781 |
) |
|
|
(17,019 |
) |
Net interest cost |
|
65,063 |
|
|
|
54,986 |
|
Deferred finance
charges |
|
(3,645 |
) |
|
|
(2,854 |
) |
Provision for losses on
accounts receivable |
|
(812 |
) |
|
|
(24 |
) |
Equity in affiliates,
net of dividends received |
|
(11,321 |
) |
|
|
(6,991 |
) |
Payments for drydock
and special survey costs |
|
6,016 |
|
|
|
7,054 |
|
Noncontrolling
interest |
|
(1,066 |
) |
|
|
(515 |
) |
Other gain on
assets |
|
28 |
|
|
|
1,051 |
|
Impairment loss on sale
of vessels |
|
(13,310 |
) |
|
|
(14,239 |
) |
Gain on debt
extinguishment |
|
— |
|
|
|
1,715 |
|
EBITDA |
$ |
58,019 |
|
|
$ |
29,952 |
|
Impairment loss on sale
of vessels |
|
13,310 |
|
|
|
14,239 |
|
Other items from
affiliates |
|
— |
|
|
|
4,679 |
|
Adjusted
EBITDA |
$ |
71,329 |
|
|
$ |
48,870 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Six
Months Ended |
June 30,
2018 |
|
June 30,
2017 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
Net cash
provided by operating activities |
$ |
29,514 |
|
|
$ |
46,204 |
|
Net cash
used in investing activities |
$ |
(22,750 |
) |
|
$ |
(35,878 |
) |
Net cash
used in by financing activities |
$ |
(19,522 |
) |
|
$ |
(17,033 |
) |
|
|
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation
to Net Income
|
|
|
|
|
June 30, |
|
June 30, |
Six Months
Ended |
2018 |
|
2017 |
(in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net income |
$ |
2,947 |
|
|
$ |
1,423 |
|
Depreciation and
amortization |
|
14,380 |
|
|
|
12,468 |
|
Amortization of
deferred drydock and special survey costs |
|
3,721 |
|
|
|
4,007 |
|
Interest expense and
finance cost, net |
|
19,242 |
|
|
|
12,076 |
|
Income tax benefit |
|
(1,079 |
) |
|
|
(628 |
) |
EBITDA |
$ |
39,211 |
|
|
$ |
29,346 |
|
|
|
|
|
|
|
|
|
EXHIBIT II
Owned Vessels
|
|
|
|
|
|
|
|
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metric tons) |
Navios Serenity |
|
Handysize |
|
2011 |
|
34,690 |
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(4) |
|
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(4) |
|
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(5) |
|
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 |
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 |
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 Canary |
|
Capesize |
|
2015 |
|
180,528 |
|
Yes |
Dream Coral |
|
Capesize |
|
2015 |
|
181,249 |
|
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) |
Navios Gemini |
|
Panamax |
|
Q4
2018 |
|
81,500 |
|
No(3) |
Navios Horizon I |
|
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 |
|
Q3
2019 |
|
82,000 |
|
Yes |
TBN |
|
Panamax |
|
Q4
2019 |
|
82,000 |
|
Yes |
TBN |
|
Panamax |
|
Q4
2019 |
|
81,000 |
|
Yes |
TBN |
|
Panamax |
|
Q1
2020 |
|
82,000 |
|
Yes |
TBN |
|
Panamax |
|
Q2
2020 |
|
81,000 |
|
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. |
(4) |
Agreed to be sold to
Navios Partners. |
(5) |
Purchase option already
exercised, the vessel is not yet delivered to owned fleet |
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