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 third
quarter and nine months ended September 30, 2018.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
“I am pleased with the results of the third quarter of 2018, for
which we reported revenue of $141.5 million and Adjusted EBITDA of
$62.8 million. We continue to see the positive effects of
healthier charter markets on our business. Rates for dry bulk
vessels improved materially, with the TCE rate of our fleet for the
third quarter of 2018 about 50% higher than the third quarter of
2017. This increased our adjusted EBITDA from core shipping
operations by almost 250% in the third quarter of 2018 compared to
the third quarter of 2017.”
Angeliki Frangou continued, “We have leveraged the increase in
market rates through our chartering initiative that has 26 vessels
chartered out on index linked agreements with an average charter
rate equal to 110% of the respective index. The charters
provide Navios multiple options for fixing the charter rate for all
or a portion of the remaining charter period.”
HIGHLIGHTS – RECENT DEVELOPMENTS
In September 2018, Navios Holdings repurchased a total of $35.7
million in par value of its 7.375% First Priority Ship Mortgage
Notes due 2022.
Fleet Update
In November 2018, Navios Primavera, a 2007-built, 53,464 dwt
vessel, was delivered to the owned fleet. Navios Holdings in August
2018, exercised the option to acquire the above chartered-in
vessel, for a purchase price of $10.5 million.
In November 2018, Navios Holdings agreed to sell to an unrelated
third party the Navios Magellan, a 2000-built Panamax vessel of
74,333 dwt, for a total net sale price of $7.0 million, to be paid
in cash.
Following fleet activities during the period 2017-2018YTD, the
average age of Navios Holdings’ fleet has decreased by 17%, basis
fully delivered fleet, and the capacity of the fleet has increased
by 8%.
- Capturing market recovery
Navios Holdings controls a fleet of 70 vessels totaling 7.1
million dwt, of which 36 are owned and 34 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 8.0 years, basis fully
delivered fleet.
Navios Holdings 5,457 available days for the remaining three
months of 2018 and 20,428 total available days for 2019 (excluding
the fleet of Navios Logistics and vessels servicing contracts of
affreightment).
The average TCE rate we achieved for the third quarter of 2018
was $14,210 per day, approximately 50% higher than the same quarter
of last year. For the nine month period ended September 30, 2018,
we achieved a TCE of $12,368 per day, approximately 40% higher than
the same period in 2017.
As of November 7, 2018, Navios Holdings has chartered-out 93.7%
of available days for the remaining three months of 2018, out of
which 64.0% on fixed rate and 29.7% on index or profit sharing, and
42.8% of available days for 2019, out of which 8.3% on fixed rate
and 34.5% 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
Income/(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 Income/(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 2018 and 2017 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The third 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 |
| |
|
September 30, |
September 30, |
| |
|
2018 |
2017 |
| |
|
(unaudited) |
(unaudited) |
| Revenue |
|
$ |
141,453 |
|
|
$ |
120,555 |
|
| Net Loss |
|
$ |
(1,816) |
|
|
$ |
(28,332) |
|
| Adjusted Net
Income/(Loss) |
|
$ |
944 |
|
(1) |
$ |
(28,332) |
|
| Net cash provided
by/(used in) operating activities |
|
$ |
10,077 |
|
|
$ |
(12,626) |
|
| EBITDA |
|
$ |
60,047 |
|
|
$ |
31,192 |
|
| Adjusted EBITDA |
|
$ |
62,807 |
|
(1) |
$ |
31,192 |
|
| Basic Loss per
Share |
|
$ |
(0.04) |
|
|
$ |
(0.26) |
|
| Adjusted Basic Loss per
Share |
|
$ |
(0.01) |
|
(1) |
$ |
(0.26) |
|
| |
| (1) Adjusted EBITDA, Adjusted Net Income and
Adjusted Basic Loss per Share for the three months ended September
30, 2018 exclude a $2.8 million impairment loss relating to the
sale of Navios Mars and Navios Sphera. |
| |
Revenue from dry bulk vessel operations for the
three months ended September 30, 2018 was $85.6 million, as
compared to $61.0 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 49.9% to
$14,210 per day in the third quarter of 2018, as compared to $9,481
per day in the same period of 2017.
Revenue from the logistics business was $55.9
million for the three months ended September 30, 2018, as compared
to $59.6 million for the same period in 2017. The decrease was
mainly attributable to (i) a $3.7 million decrease in revenue from
the cabotage business mainly due to fewer operating days; (ii) a
$2.8 million decrease in sales of products mainly due to a decrease
in the Paraguayan liquid port's volumes of products sold; and (iii)
a $1.9 million decrease in revenue from the barge business mainly
related to liquid cargo transportation. The overall decrease was
partially mitigated by (i) a $4.7 million increase in revenue from
the port terminal business mainly due to the commencement of
operations at the new iron ore terminal.
Net Loss of Navios Holdings was $1.8 million for
the three months ended September 30, 2018, as compared to $28.3
million for the same period in 2017. Net Loss was affected by items
described in the table above. Excluding these items, Adjusted Net
Income of Navios Holdings for the three months ended September 30,
2018 was $0.9 million, as compared to $28.3 million Adjusted Net
Loss for the same period in 2017. The $29.2 million increase in
Adjusted Net Income was mainly due to (i) a $31.6 million increase
in Adjusted EBITDA; (ii) a $1.6 million decrease in depreciation
and amortization; and (iii) a $0.3 million increase in income tax
benefit. This overall increase of $33.5 million was partially
mitigated by (i) a $3.9 million increase in interest expense and
finance cost, net; (ii) a $0.3 million increase in amortization for
deferred drydock and special survey costs; and (iii) a $0.1 million
increase in share-based compensation expense.
Net Income of Navios Logistics was $6.7 million
for the three month period ended September 30, 2018, as compared to
$1.8 million for the same period in 2017.
Adjusted EBITDA of Navios Holdings for the three
months ended September 30, 2018 increased by $31.6 million to $62.8
million, as compared to $31.2 million for the same period in 2017.
The increase in Adjusted EBITDA was primarily due to (i) a $20.9
million increase in revenue; (ii) a $6.8 million decrease in time
charter, voyage and logistics business expenses; (iii) a $6.5
million increase in gain on bond extinguishment; (iv) a $3.9
million decrease in direct vessel expenses (excluding the
amortization of deferred drydock and special survey costs); and (v)
a $0.3 million decrease in general and administrative expenses
(excluding share-based compensation expenses). This overall
increase of $38.4 million was partially mitigated by (i) a $5.1
million decrease in equity in net earnings from affiliated
companies; and (ii) a $1.7 million increase in net income
attributable to noncontrolling interest.
EBITDA of Navios Logistics was $25.5 million for
the three month period ended September 30, 2018, as compared to
$18.2 million for the same period in 2017.
Nine Months Ended September 30, 2018 and 2017 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, 2018 and 2017 presented below was derived from the
unaudited condensed consolidated financial statements for the
respective periods.
| |
|
|
|
|
|
| |
|
Nine Month Period Ended |
|
Nine Month Period Ended |
|
| |
|
September 30, |
|
September 30, |
|
| |
|
2018 |
|
2017 |
|
| |
|
(unaudited) |
|
(unaudited) |
|
| Revenue |
|
$ |
390,386 |
|
|
$ |
334,519 |
|
|
| Net Loss |
|
$ |
(67,965) |
|
|
$ |
(114,309) |
|
|
| Adjusted Net Loss |
|
$ |
(51,895) |
|
(1) |
$ |
(95,391) |
|
(2) |
| Net cash provided by
operating activities |
|
$ |
39,591 |
|
|
$ |
33,578 |
|
|
| EBITDA |
|
$ |
118,066 |
|
|
$ |
61,144 |
|
|
| Adjusted EBITDA |
|
$ |
134,136 |
|
(1) |
$ |
80,062 |
|
(2) |
| Basic Loss per
Share |
|
$ |
(0.63) |
|
|
$ |
(1.04) |
|
|
| Adjusted Basic Loss per
Share |
|
$ |
(0.50) |
|
(1) |
$ |
(0.89) |
|
(2) |
| |
| (1) Adjusted EBITDA, Adjusted Net Loss and
Adjusted Basic Loss per Share for the nine months ended September
30, 2018 exclude a $16.1 million impairment loss relating to the
sale of Navios Herakles, Navios Achilles, Navios Mars and Navios
Sphera. |
| (2) 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. |
| |
Revenue from dry bulk vessel operations for the
nine months ended September 30, 2018 was $222.1 million, as
compared to $171.8 million for the same period in 2017. The
increase in dry bulk revenue was mainly attributable to the
increase in TCE per day by 40.0% to $12,368 per day in the nine
month period ended September 30, 2018, as compared to $8,836 per
day in the same period in 2017.
Revenue from the logistics business was $168.3
million for the nine months ended September 30, 2018, as compared
to $162.8 million for the same period in 2017. The increase was
mainly attributable to a $21.7 million increase in revenue from the
port terminal business mainly due to the commencement of operations
at the new iron ore terminal. The overall increase was partially
mitigated by (i) a $7.9 million decrease in revenue from the barge
business mainly related to liquid cargo transportation; (ii) a $6.4
million decrease in revenue from the cabotage business mainly due
to fewer operating days and lower rates; and (iii) a $1.9 million
decrease in sales of products mainly due to a decrease in the
Paraguayan liquid port's volumes of products sold.
Net Loss of Navios Holdings was $68.0 million
for the nine months ended September 30, 2018, as compared to $114.3
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 nine months ended September 30,
2018 was $51.9 million, as compared to $95.4 million for the same
period in 2017. The $43.5 million decrease in Adjusted Net Loss was
mainly due to (i) a $54.0 million increase in Adjusted EBITDA; (ii)
a $2.7 million decrease in depreciation and amortization; (iii) a
$0.7 million increase in income tax benefit; and (iv) a $0.4
million decrease in amortization for deferred drydock and special
survey costs. This overall decrease was partially offset by (i) a
$14.0 million increase in interest expense and finance cost, net;
and (ii) a $0.3 million increase in share-based compensation
expense.
Net Income of Navios Logistics was $9.7 million
for the nine month period ended September 30, 2018, as compared to
$3.3 million for the same period in 2017.
Adjusted EBITDA of Navios Holdings for the nine
months ended September 30, 2018 increased by $54.0 million to
$134.1 million, as compared to $80.1 million for the same period in
2017. The $54.0 million increase in Adjusted EBITDA was primarily
due to (i) a $55.9 million increase in revenue; (ii) a $16.5
million decrease in direct vessel expenses (excluding the
amortization of deferred drydock and special survey costs); (iii) a
$6.2 million decrease in time charter, voyage and logistics
business expenses; and (iv) a $4.8 million increase in gain on bond
and debt extinguishment. This overall increase was partially
mitigated by (i) a $20.6 million decrease in equity in net earnings
from affiliated companies; (ii) a $3.1 million increase in other
expense, net; (iii) a $2.3 million increase in general and
administrative expenses (excluding share-based compensation
expenses); (iv) a $2.3 million increase in net income attributable
to the noncontrolling interest; and (v) a $1.1 million decrease in
gain on sale of assets.
EBITDA of Navios Logistics was $64.8 million for
the nine month period ended September 30, 2018, as compared to
$47.5 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 nine month periods ended September 30, 2018 and
2017, respectively.
|
|
|
Three Month |
|
Three Month |
|
Nine Month |
|
Nine Month |
|
|
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
Period Ended |
|
|
|
September 30, |
|
September 30, |
|
September 30, |
|
September 30, |
|
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
| Available Days (1) |
|
|
5,875 |
|
|
|
5,794 |
|
|
|
17,222 |
|
|
|
17,564 |
|
| Operating Days (2) |
|
|
5,858 |
|
|
|
5,789 |
|
|
|
17,161 |
|
|
|
17,534 |
|
| Fleet Utilization
(3) |
|
|
99.7% |
|
|
|
99.9% |
|
|
|
99.6% |
|
|
|
99.8% |
|
| Equivalent Vessels
(4) |
|
|
64 |
|
|
|
63 |
|
|
|
63 |
|
|
|
64 |
|
| TCE (5) |
|
$ |
14,210 |
|
|
$ |
9,481 |
|
|
$ |
12,368 |
|
|
$ |
8,836 |
|
| |
| (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, November 20, 2018, 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, 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: Tuesday, November 20,
2018 at 8:30 am ET Call Title: Navios
Holdings Q3 2018 Financial Results Conference Call US Dial In:
+1.877.480.3873 International Dial In: +1.404.665.9927 Conference
ID: 974 7749
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: 974 7749
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 MonthPeriod
EndedSeptember 30,2018 |
|
|
Three MonthPeriod
EndedSeptember 30,2017 |
|
|
Nine MonthPeriod
EndedSeptember 30,2018 |
|
|
Nine MonthPeriod
EndedSeptember 30,2017 |
| |
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
|
|
(unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Revenue |
|
$ |
141,453 |
|
|
|
$ |
120,555 |
|
|
|
$ |
390,386 |
|
|
|
$ |
334,519 |
|
| Administrative fee
revenue from affiliates |
|
|
7,357 |
|
|
|
|
6,284 |
|
|
|
|
21,488 |
|
|
|
|
16,942 |
|
| Time charter, voyage
and logistics business expenses |
|
|
(49,980) |
|
|
|
|
(56,824) |
|
|
|
|
(155,363) |
|
|
|
|
(161,628) |
|
| Direct vessel
expenses(1) |
|
|
(24,959) |
|
|
|
|
(28,739) |
|
|
|
|
(73,756) |
|
|
|
|
(90,566) |
|
| General and
administrative expenses incurred on behalf of affiliates |
|
|
(7,357) |
|
|
|
|
(6,284) |
|
|
|
|
(21,488) |
|
|
|
|
(16,942) |
|
| General and
administrative expenses(2) |
|
|
(6,503) |
|
|
|
|
(6,711) |
|
|
|
|
(21,757) |
|
|
|
|
(19,203) |
|
| Depreciation and
amortization |
|
|
(24,644) |
|
|
|
|
(26,179) |
|
|
|
|
(75,247) |
|
|
|
|
(77,893) |
|
| Interest expense and
finance cost, net |
|
|
(32,734) |
|
|
|
|
(28,825) |
|
|
|
|
(97,797) |
|
|
|
|
(83,812) |
|
| Impairment loss on sale
of vessels |
|
|
(2,760) |
|
|
|
|
— |
|
|
|
|
(16,070) |
|
|
|
|
(14,239) |
|
| Other income/(expense),
net |
|
|
4,597 |
|
|
|
|
(1,912) |
|
|
|
|
(2,464) |
|
|
|
|
(3,075) |
|
| Income/(loss)
before equity in net earnings of affiliated companies |
|
|
4,470 |
|
|
|
|
(28,635) |
|
|
|
|
(52,068) |
|
|
|
|
(115,897) |
|
| Equity in net
(losses)/earnings of affiliated companies |
|
|
(4,231) |
|
|
|
|
901 |
|
|
|
|
(13,720) |
|
|
|
|
2,208 |
|
|
Income/(loss) before taxes |
|
$ |
239 |
|
|
|
$ |
(27,734) |
|
|
|
$ |
(65,788) |
|
|
|
$ |
(113,689) |
|
| Income tax benefit |
|
|
380 |
|
|
|
|
69 |
|
|
|
|
1,324 |
|
|
|
|
562 |
|
| Net
income/(loss) |
|
|
619 |
|
|
|
|
(27,665) |
|
|
|
|
(64,464) |
|
|
|
|
(113,127) |
|
| Less: Net income
attributable to the noncontrolling interest |
|
|
(2,435) |
|
|
|
|
(667) |
|
|
|
|
(3,501) |
|
|
|
|
(1,182) |
|
| Net loss
attributable to Navios Holdings common
stockholders |
|
$ |
(1,816) |
|
|
|
$ |
(28,332) |
|
|
|
$ |
(67,965) |
|
|
|
$ |
(114,309) |
|
| Loss
attributable to Navios Holdings common
stockholders, basic and diluted |
|
$ |
(4,382) |
|
|
|
$ |
(30,272) |
|
|
|
$ |
(75,644) |
|
|
|
$ |
(121,049) |
|
| Basic and
diluted net losses per share attributable to Navios Holdings common
stockholders |
|
$ |
(0.04) |
|
|
|
$ |
(0.26) |
|
|
|
$ |
(0.63) |
|
|
|
$ |
(1.04) |
|
| Weighted
average number of shares, basic and diluted |
|
|
119,423,135 |
|
|
|
|
117,535,234 |
|
|
|
|
119,423,025 |
|
|
|
|
116,260,640 |
|
| |
| (1) Includes expenses of Navios Logistics of
$13.9 million and $18.4 million for the three months ended
September 30, 2018 and 2017, respectively and $43.3 million and
$55.0 million for the nine months ended September 30, 2018 and
2017, respectively. |
| (2) Includes expenses of Navios Logistics of $3.4
million and $4.0 million for the three months ended September 30,
2018 and 2017, respectively and $11.3 million and $11.7 million for
the nine months ended September 30, 2018 and 2017,
respectively. |
| NAVIOS
MARITIME HOLDINGS INC. |
| Other
Financial Data |
| |
| |
|
|
September 30,2018 |
|
|
|
December 31,2017 |
|
| |
|
|
(unaudited) |
|
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
| Cash and cash
equivalents, including restricted cash |
|
$ |
142,981 |
|
|
$ |
134,190 |
|
| Other current
assets |
|
|
133,757 |
|
|
|
121,886 |
|
| Deposits for vessels,
port terminals and other fixed assets |
|
|
1,064 |
|
|
|
36,849 |
|
| Vessels, port terminal
and other fixed assets, net |
|
|
1,694,429 |
|
|
|
1,809,225 |
|
| Other non-current
assets |
|
|
244,002 |
|
|
|
251,073 |
|
| Goodwill and other
intangibles |
|
|
272,624 |
|
|
|
276,758 |
|
| Total
assets |
|
$ |
2,488,857 |
|
|
$ |
2,629,981 |
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
| LIABILITIES AND
EQUITY |
|
|
|
|
|
|
|
|
| Current liabilities,
including current portion of long-term debt, net |
|
|
232,941 |
|
|
|
236,194 |
|
| Senior and ship
mortgage notes, net |
|
|
1,270,726 |
|
|
|
1,301,999 |
|
| Long-term debt, net of
current portion |
|
|
295,754 |
|
|
|
346,604 |
|
| Other non-current
liabilities |
|
|
133,236 |
|
|
|
128,020 |
|
| Total stockholders’
equity |
|
|
556,200 |
|
|
|
617,164 |
|
| Total
liabilities and stockholders’ equity |
|
$ |
2,488,857 |
|
|
$ |
2,629,981 |
|
| |
|
|
|
|
|
|
|
|
Disclosure of Non-GAAP Financial
Measures
EBITDA, Adjusted EBITDA, Adjusted Net
Income/(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 Income/(Loss) and Adjusted Basic Loss
per Share represent Net Income/(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 |
2018 |
|
2017 |
| (in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| |
|
|
|
|
|
| Net cash provided
by/(used in) operating activities |
$ |
10,077 |
|
|
$ |
(12,626) |
|
| Net increase in
operating assets |
|
4,409 |
|
|
|
8,462 |
|
| Net decrease in
operating liabilities |
|
18,686 |
|
|
|
4,916 |
|
| Net interest cost |
|
32,734 |
|
|
|
28,826 |
|
| Deferred finance
charges |
|
(2,318) |
|
|
|
(1,440) |
|
| Recovery for losses on
accounts receivable |
|
394 |
|
|
|
300 |
|
| Equity in affiliates,
net of dividends received |
|
(5,377) |
|
|
|
427 |
|
| Payments for drydock
and special survey costs |
|
173 |
|
|
|
2,970 |
|
| Noncontrolling
interest |
|
(2,435) |
|
|
|
(667) |
|
| Other gain on
assets |
|
— |
|
|
|
24 |
|
| Impairment loss on sale
of vessels |
|
(2,760) |
|
|
|
— |
|
| Gain on bond
extinguishment |
|
6,464 |
|
|
|
— |
|
|
EBITDA |
$ |
60,047 |
|
|
$ |
31,192 |
|
| Impairment loss on sale
of vessels |
|
2,760 |
|
|
|
— |
|
| Adjusted
EBITDA |
$ |
62,807 |
|
|
$ |
31,192 |
|
| Three Month
Period Ended |
September 30, |
|
September 30, |
| (in thousands
of U.S. dollars) |
2018 |
|
2017 |
| |
(unaudited) |
|
(unaudited) |
| Net cash provided
by/(used in) operating activities |
$ |
10,077 |
|
|
$ |
(12,626) |
|
| Net cash provided by
investing activities |
$ |
74,620 |
|
|
$ |
2,891 |
|
| Net cash used in
financing activities |
$ |
(63,148) |
|
|
$ |
(5,697) |
|
| |
|
|
|
|
|
|
|
Adjusted EBITDA breakdown
| |
September 30, |
|
September 30, |
| Three Months
Ended |
2018 |
|
2017 |
| (in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| |
|
|
|
|
|
| Adjusted EBITDA from
core shipping operations |
$ |
43,925 |
|
|
$ |
12,780 |
| Navios Logistics
(including noncontrolling interest) |
|
23,113 |
|
|
|
17,511 |
| Equity in net
(losses)/earnings of affiliated companies |
|
(4,231 |
) |
|
|
901 |
| Adjusted
EBITDA |
$ |
62,807 |
|
|
$ |
31,192 |
| |
|
|
|
|
|
|
| Navios Logistics EBITDA Reconciliation to Net
income |
| |
| |
September 30, |
|
September 30, |
| Three Months
Ended |
2018 |
|
2017 |
| (in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| |
|
|
|
|
|
| Net income |
$ |
6,730 |
|
|
$ |
1,844 |
|
| Depreciation and
amortization |
|
7,255 |
|
|
|
7,156 |
|
| Amortization of
deferred drydock and special survey costs |
|
2,054 |
|
|
|
1,867 |
|
| Interest expense and
finance cost, net |
|
9,956 |
|
|
|
7,446 |
|
| Income tax benefit |
|
(447) |
|
|
|
(135) |
|
|
EBITDA |
$ |
25,548 |
|
|
$ |
18,178 |
|
| Navios Holdings Reconciliation of EBITDA and
Adjusted EBITDA to Cash from Operations |
| |
| |
|
September 30, |
|
|
|
September
30, |
|
| Nine Months
Ended |
|
2018 |
|
|
|
2017 |
|
| (in thousands
of U.S. dollars) |
|
(unaudited) |
|
|
|
(unaudited) |
|
| |
|
|
|
|
|
|
|
| Net cash provided by
operating activities |
$ |
39,591 |
|
|
$ |
33,578 |
|
| Net increase/(decrease)
in operating assets |
|
13,742 |
|
|
|
(30,954) |
|
| Net increase in
operating liabilities |
|
(3,095) |
|
|
|
(12,103) |
|
| Net interest cost |
|
97,797 |
|
|
|
83,812 |
|
| Deferred finance
charges |
|
(5,963) |
|
|
|
(4,294) |
|
| (Provision)/recovery
for losses on accounts receivable |
|
(418) |
|
|
|
276 |
|
| Equity in affiliates,
net of dividends received |
|
(16,698) |
|
|
|
(6,564) |
|
| Payments for drydock
and special survey costs |
|
6,189 |
|
|
|
10,024 |
|
| Noncontrolling
interest |
|
(3,501) |
|
|
|
(1,182) |
|
| Other gain on
assets |
|
28 |
|
|
|
1,075 |
|
| Impairment loss on sale
of vessels |
|
(16,070) |
|
|
|
(14,239) |
|
| Gain on bond and debt
extinguishment |
|
6,464 |
|
|
|
1,715 |
|
|
EBITDA |
$ |
118,066 |
|
|
$ |
61,144 |
|
| Impairment loss on sale
of vessels |
|
16,070 |
|
|
|
14,239 |
|
| Other items from
affiliates |
|
— |
|
|
|
4,679 |
|
| Adjusted
EBITDA |
$ |
134,136 |
|
|
$ |
80,062 |
|
| |
|
September 30, |
|
|
|
September 30, |
|
| Nine
Months Ended |
|
2018 |
|
|
|
2017 |
|
| (in thousands
of U.S. dollars) |
|
(unaudited) |
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
| Net cash
provided by operating activities |
$ |
39,591 |
|
|
$ |
33,578 |
|
| Net cash
provided by/(used in) investing activities |
$ |
51,870 |
|
|
$ |
(32,987) |
|
| Net cash
used in financing activities |
$ |
(82,670) |
|
|
$ |
(22,730) |
|
| Navios Logistics EBITDA Reconciliation to Net
Income |
| |
| |
September 30, |
|
September 30, |
| Nine Months
Ended |
2018 |
|
2017 |
| (in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| |
|
|
|
|
|
|
|
| Net income |
$ |
9,677 |
|
|
$ |
3,267 |
|
| Depreciation and
amortization |
|
21,635 |
|
|
|
19,624 |
|
| Amortization of
deferred drydock and special survey costs |
|
5,775 |
|
|
|
5,874 |
|
| Interest expense and
finance cost, net |
|
29,198 |
|
|
|
19,522 |
|
| Income tax benefit |
|
(1,526) |
|
|
|
(763) |
|
|
EBITDA |
$ |
64,759 |
|
|
$ |
47,524 |
|
| |
|
|
|
|
|
|
|
Adjusted EBITDA breakdown
| |
September 30, |
|
September 30, |
| Nine Months
Ended |
2018 |
|
2017 |
| (in thousands
of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| |
|
|
|
|
|
| Adjusted EBITDA from
core shipping operations |
$ |
86,598 |
|
|
$ |
31,512 |
| Navios Logistics
(including noncontrolling interest) |
|
61,258 |
|
|
|
46,342 |
| Equity in net
(losses)/earnings of affiliated companies |
|
(13,720 |
) |
|
|
2,208 |
| Adjusted
EBITDA |
$ |
134,136 |
|
|
$ |
80,062 |
| |
|
|
|
|
|
|
| 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 Primavera |
|
Ultra
Handymax |
|
2007 |
|
53,464 |
| Navios Ulysses |
|
Ultra
Handymax |
|
2007 |
|
55,728 |
| Navios Celestial |
|
Ultra
Handymax |
|
2009 |
|
58,063 |
| Navios Vega |
|
Ultra
Handymax |
|
2009 |
|
58,792 |
| Navios Magellan
(4) |
|
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 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 |
|
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) |
| 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) |
| Navios Herakles I |
|
Panamax |
|
Q3
2019 |
|
82,000 |
|
Yes |
| Navios Felicity I |
|
Panamax |
|
Q4
2019 |
|
81,000 |
|
Yes |
| TBN |
|
Panamax |
|
Q4
2019 |
|
82,000 |
|
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. |
| |
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