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 first
quarter ended March 31, 2019.
Angeliki Frangou, Chairman and Chief Executive
Officer, stated, “I am pleased with the results of the first
quarter of 2019, for which we reported revenue of $140.3 million
and Adjusted EBITDA of $68.5 million.”
Angeliki Frangou continued, “We are continuing
to develop our logistics chain in South America. We are in the
preliminary stages of constructing a modern upriver port facility
in Mato Grosso do Sul, a fertile region exporting grains. This new
port should provide a service to the region and create additional
volume on the river for our barge business and grain transshipment
terminal in Uruguay.”
HIGHLIGHTS – RECENT
DEVELOPMENTS
Debt Updates
During March 2019 and as of April 15, 2019, Navios
South American Logistics Inc. (“Navios Logistics”) repurchased a
total of $35.5 million in par value of its 7.375% First Priority
Ship Mortgage Notes due 2022 (“2022 Notes”) from unaffiliated third
parties in open market transactions for $17.6 million. On April 25,
2019, Navios Holdings entered into a secured credit facility of
$50.0 million with Navios Logistics to be used for general
corporate purposes, including the repurchase from time to time of
the Company’s 7.375% First Priority Ship Mortgage Notes due 2022
(the “2022 Notes”). The secured credit facility is available in
multiple drawings, bears interest at a fixed rate of 12.75% for the
first year and 14.75% for the second year, payable annually, and
matures in April 2021. As of April 25, 2019, $19.0 million was
drawn under this facility of which $18.7 million was used to
acquire the 2022 Notes from Navios Logistics.
In May 2019, Navios Holdings released its Navios
Maritime Partners L.P. ownership and 224,116 Navios Maritime
Acquisition Corporation shares that were collateral under the
11.25% Senior Secured Notes and were replaced by one Capesize
vessel.
In May 2019, Navios Holdings agreed the main terms
for the extension of $39.5 million maturities from 2020 to June
2021.
Completion of Tender Offer for the
Company’s Preferred Stock
As of March 21, 2019, a total of 10,930 Series H
were validly tendered in exchange for a total of approximately $4.2
million of cash consideration and approximately $4.7 million in
aggregate principal amount of the Company’s newly issued 9.75%
Senior Notes due 2024 (the “2024 Notes”). As of April 18, 2019, a
total of 8,841 Series G were validly tendered in exchange for a
total of approximately $4.4 million of cash consideration and
approximately $3.9 million in aggregate principal amount of 2024
Notes.
Fleet Update
From the beginning of 2018 through 2019 YTD, Navios
Holdings has decreased the average age of its owned fleet by 20%
and decreased its owned fleet capacity by 2%.
In May 2019, the Company agreed to acquire a former
chartered-in vessel, the Sea Victory (TBN Navios Victory), a
2014-built Panamax vessel of 77,095 dwt, for a purchase price of
$14.5 million. The acquisition is expected to be completed in Q3
2019.
On May 3, 2019, the Company sold to an unrelated
third party the Navios Equator Prosper, a 2000-built Capesize
vessel of 171,191 dwt, for a total net sale price of $11.5 million,
paid in cash.
In April and May 2019, the Company agreed to sell
to unrelated third parties the Navios Mercator, a 2002-built Ultra
Handymax vessel of 53,553 dwt for a total net sale price of $6.7
million and the Navios Vector, a 2002-built Ultra Handymax vessel
of 50,296 dwt for a total net sale price of $6.9 million, in each
case to be paid in cash. Closing is expected in Q2 and Q3 of
2019.
Navios Holdings controls a fleet of 60 vessels
(including two vessels expected to be sold) totaling 6.2 million
dwt, of which 33 are owned and 27 are chartered-in under long-term
charters (collectively, the "Core Fleet"). The fleet consists of 18
Capesize, 28 Panamax, 12 Ultra-Handymax and two Handysize vessels,
with an average age of 7.7 years, basis fully delivered fleet.
As of May 20, 2019, Navios Holdings has
chartered-out 82.6% of available days for the remaining nine months
of 2019, out of which 42.9% are chartered-out on fixed rate and
39.7% on index. The average contracted daily charter-in rate for
the long-term charter-in vessels for the remaining nine months of
2019 is $13,852 per day.
The above figures do not include the fleets of
Navios Logistics and Navios Maritime Containers L.P. (“Navios
Containers”) and vessels servicing contracts of affreightment.
Exhibit II provides certain details of the Core
Fleet of Navios Holdings. It does not include the fleets of Navios
Logistics and Navios Containers.
Earnings Highlights
EBITDA, Adjusted EBITDA, Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
and Adjusted Basic Loss attributable to Navios Holdings’ common
stockholders per Share are non-U.S. GAAP financial measures and
should not be used in isolation or as substitution for Navios
Holdings’ results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, “Disclosure of
Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted
EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’
common stockholders and Adjusted Basic Loss attributable to Navios
Holdings’ common stockholders per Share of Navios Holdings
(including Navios Logistics and Navios Containers), and EBITDA of
Navios Logistics and Navios Containers (both on a stand-alone
basis) and a reconciliation of such measures to the most comparable
measures calculated under U.S. GAAP.
As of November 30, 2018, Navios Holdings obtained control over
Navios Containers and consequently consolidated Navios Containers
from that date onwards.
First Quarter 2019 and 2018 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The first quarter 2019 and 2018 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 Month PeriodEnded |
Three MonthPeriod Ended |
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March 31, |
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March 31, 2019 |
March 31, |
|
|
|
2019 |
|
Excluding NaviosContainers |
2018 |
|
|
|
(unaudited) |
|
(unaudited) |
(unaudited) |
|
Revenue |
$ |
140,280 |
|
$ |
108,448 |
$ |
116,882 |
|
Net Loss attributable to Navios
Holdings’ common stockholders |
$ |
(5,304) |
|
$ |
(5,294) |
$ |
(40,857) |
|
Adjusted Net Income/(Loss)
attributable to Navios Holdings’ common stockholders |
$ |
227 |
(1) |
$ |
237 |
$ |
(34,142) |
(3) |
Net cash provided by operating
activities |
$ |
18,323 |
|
$ |
18,360 |
$ |
17,806 |
|
EBITDA |
$ |
63,002 |
|
$ |
50,724 |
$ |
21,383 |
|
Adjusted EBITDA |
$ |
68,533 |
(1) |
$ |
56,255 |
$ |
28,098 |
(3) |
Basic Earnings/(Loss)
attributable to Navios Holdings’ common stockholders per
Share(4) |
$ |
1.32 |
|
$ |
1.33 |
$ |
(3.53) |
|
Adjusted Basic Loss attributable
to Navios Holdings’ common stockholders per Share(4) |
$ |
(0.19) |
(2) |
$ |
(0.19) |
$ |
(2.98) |
(3) |
(1) |
Adjusted EBITDA and Adjusted Net Income attributable to Navios
Holdings’ common stockholders for the three months ended March 31,
2019 exclude $5.5 million of impairment losses related to the sale
of one drybulk vessel. |
(2) |
Adjusted Basic Loss attributable to Navios Holdings’ common
stockholders per Share for the three months ended March 31, 2019
exclude the item referred in footnote (1) above as well as a gain
of $24.0 million related to the tender offer for the Company‘s
preferred stock discussed under “Highlights - Recent Developments -
Completion of Tender Offer for the Company’s Preferred Stock”. |
(3) |
Adjusted EBITDA, Adjusted Net Loss attributable to Navios Holdings’
common stockholders and Adjusted Basic Loss attributable to Navios
Holdings’ common stockholders per Share for the three months ended
March 31, 2018 exclude $6.7 million of impairment losses related to
the sale of one drybulk vessel. |
(4) |
Basic and Adjusted Basic Earnings/(Loss) attributable to Navios
Holdings’ common stockholders per Share post reverse stock split
adjusted for all periods presented. |
Revenue from dry bulk vessel operations for the
three months ended March 31, 2019 was $52.7 million, as compared to
$64.7 million for the same period during 2018. The decrease in dry
bulk revenue was mainly attributable to the decrease in the time
charter equivalent (“TCE”) per day by 12.4% to $9,622 per day in
the first quarter of 2019, as compared to $10,983 per day in the
same period of 2018.
Revenue from the logistics business was $55.8
million for the three months ended March 31, 2019 as compared to
$52.2 million for the same period in 2018. The increase was mainly
attributable to (i) a $1.8 million increase in revenue from the
barge business mainly due to an increase in the amount of dry and
liquid cargo moved, (ii) a $1.2 million increase in revenue from
the cabotage business mainly due to an increase in operating days
of the cabotage fleet; and (iii) a $0.6 million increase in revenue
from port terminal business, mainly due to more volumes
transshipped in the grain port terminal.
Revenue of Navios Containers for the three
months ended March 31, 2019 was $31.8 million and consisted of time
charter revenues. Navios Containers’ results of operations were not
included in the Company’s consolidated results of operations for
the three months ended March 31, 2018.
Net Loss attributable to Navios Holdings’ common
stockholders was $5.3 million for the three months ended March 31,
2019, as compared to $40.9 million Net Loss attributable to Navios
Holdings’ common stockholders for the same period in 2018. Net Loss
attributable to Navios Holdings’ common stockholders was affected
by items described in the table above. Excluding these items,
Adjusted Net Income attributable to Navios Holdings’ common
stockholders for the three months ended March 31, 2019 was $0.2
million, as compared to $34.1 million Adjusted Net Loss
attributable to Navios Holdings’ common stockholders for the same
period in 2018. This increase in Adjusted Net Income was mainly due
to (i) a $40.4 million increase in Adjusted EBITDA, (ii) a $0.6
million decrease in amortization for deferred drydock and special
survey costs, and (iii) a $0.4 million decrease in share-based
compensation expense. This overall increase of $41.4 million was
partially mitigated by (i) a $3.7 million increase in depreciation
and amortization, (ii) a $2.6 million increase in interest expense
and finance cost, net, and (iii) a $0.8 million decrease in income
tax benefit.
Net Income of Navios Logistics, on a standalone
basis, was $5.3 million for the three month period ended March 31,
2019 as compared to $1.0 million Net Loss for the same period in
2018.
Net Loss of Navios Containers, on a standalone
basis, was $0.2 million for the three month period ended March 31,
2019. Navios Containers’ results of operations were not included in
the Company’s consolidated results of operations for the three
month period ended March 31, 2018.
Adjusted EBITDA of Navios Holdings for the three
month period ended March 31, 2019 increased by $40.4 million to
$68.5 million, as compared to $28.1 million for the same period in
2018. The increase in Adjusted EBITDA was primarily due to (i) a
$23.4 million increase in revenue, (ii) a $15.7 million increase in
gain on bond extinguishment, (iii) a $10.8 million increase in
equity in net earnings from affiliated companies, (iv) a $10.2
million increase in other income, net, and (v) a $1.9 million
decrease in time charter, voyage and logistics business expenses.
This overall increase of $62.0 million was partially offset by (i)
a $15.9 million increase in direct vessel expenses (excluding the
amortization of deferred drydock and special survey costs), (ii) a
$3.6 million increase in general and administrative expenses
(excluding share-based compensation expenses), and (iii) a $2.1
million decrease in net loss attributable to noncontrolling
interest.
EBITDA of Navios Logistics, on a standalone
basis, was $24.2 million for the three month period ended March 31,
2019, as compared to $16.8 million for the same period in 2018.
EBITDA of Navios Containers, on a standalone
basis, was $12.0 million for the three month period ended March 31,
2019.
Fleet Summary Data:
The following table reflects certain key indicators indicative
of the performance of Navios Holdings' dry bulk operations
(excluding the Navios Logistics and Navios Containers fleets) and
its fleet performance for the three month periods ended March 31,
2019 and 2018, respectively.
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Three Month |
|
Three Month |
|
Period Ended |
|
Period Ended |
|
March 31, |
|
March 31, |
|
2019 |
|
2018 |
|
(Unaudited) |
|
(Unaudited) |
Available Days (1) |
|
5,337 |
|
|
5,554 |
Operating Days (2) |
|
5,313 |
|
|
5,517 |
Fleet Utilization (3) |
|
99.5% |
|
|
99.3% |
Equivalent Vessels (4) |
|
59 |
|
|
62 |
TCE (5) |
$ |
9,622 |
|
$ |
10,983 |
(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 scheduled 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, May 28, 2019, at 8:30 am ET, at which
time Navios Holdings' senior management will provide highlights and
commentary on earnings results for the first quarter ended March
31, 2019.
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, May 28, 2019 at 8:30 am
ET Call Title: Navios Holdings Q1 2019 Financial Results
Conference Call US Dial In: +1.877.480.3873 International Dial In:
+1.404.665.9927 Conference ID: 334 8718
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: 334 8718
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 Containers L.P.
Navios Maritime Containers L.P. (NASDAQ: 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.
About Navios Maritime Partners L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is a
publicly traded master limited partnership which owns and operates
dry cargo vessels. For more information, please visit its website
at www.navios-mlp.com.
About Navios Maritime Acquisition
Corporation
Navios 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.
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 expected cash flow generation, future contracted
revenues, potential capital gains, our ability to take advantage of
dislocation in the market and any market recovery, and Navios
Holdings' growth strategy and measures to implement such strategy;
including expected vessel acquisitions and entering into further
time charters. Words such as “may,” “expects,” “intends,” “plans,”
“believes,” “anticipates,” “hopes,” “estimates,” and variations of
such words and similar expressions are intended to identify
forward-looking statements. Such statements include comments
regarding expected revenue and time charters. These forward-looking
statements are based on the information available to, and the
expectations and assumptions deemed reasonable by Navios Holdings
at the time these statements were made. Although Navios Holdings
believes that the expectations reflected in such forward-looking
statements are reasonable, no assurance can be given that such
expectations will prove to have been correct. These statements
involve known and unknown risks and are based upon a number of
assumptions and estimates which are inherently subject to
significant uncertainties and contingencies, many of which are
beyond the control of Navios Holdings. Actual results may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially include, but are not limited to 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, and other factors listed from time to time in Navios
Holdings' filings with the Securities and Exchange Commission,
including its Forms 20-F and Forms 6-K. Navios Holdings expressly
disclaims any obligations or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein to reflect any change in Navios Holdings' expectations with
respect thereto or any change in events, conditions or
circumstances on which any statement is based. Navios Holdings
makes no prediction or statement about the performance of its
common stock or debt securities.
Contact:
Navios Maritime Holdings
Inc.+1.212.906.8643investors@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
EndedMarch 31, 2019 |
|
Three Month Period
Ended March 31, 2018 |
|
(unaudited) |
|
(unaudited) |
Revenue |
$ |
140,280 |
|
$ |
116,882 |
Administrative fee revenue
from affiliates |
|
6,464 |
|
|
7,005 |
Time charter, voyage and
logistics business expenses |
|
(49,644) |
|
|
(51,495) |
Direct vessel expenses(1) |
|
(39,436) |
|
|
(24,264) |
General and administrative
expenses incurred on behalf of affiliates |
|
(6,464) |
|
|
(7,005) |
General and administrative
expenses(2) |
|
(10,026) |
|
|
(6,927) |
Depreciation and
amortization |
|
(29,785) |
|
|
(26,066) |
Interest expense and finance
cost, net |
|
(34,397) |
|
|
(31,810) |
Impairment losses on sale of
vessels |
|
(5,531) |
|
|
(6,715) |
Gain on bond
extinguishment |
|
15,662 |
|
|
— |
Other income/(expense),
net |
|
5,389 |
|
|
(4,819) |
Loss before equity in
net earnings of affiliated companies |
|
(7,488) |
|
|
(35,214) |
Equity in net
earnings/(losses) of affiliated companies |
|
4,277 |
|
|
(6,464) |
Loss before
taxes |
$ |
(3,211) |
|
$ |
(41,678) |
Income tax
(expense)/benefit |
|
(405) |
|
|
442 |
Net loss |
|
(3,616) |
|
|
(41,236) |
Less: Net (income)/ loss
attributable to the noncontrolling interest |
|
(1,688) |
|
|
379 |
Net loss attributable
to NaviosHoldings’ common
stockholders |
$ |
(5,304) |
|
$ |
(40,857) |
Income/(loss)
attributable to Navios Holdings’ common
stockholders, basic |
$ |
16,190 |
|
$ |
(43,406) |
Income/(loss)
attributable to Navios Holdings’ common
stockholders, diluted |
$ |
16,363 |
|
$ |
(43,406) |
Basic earnings/(loss)
per share attributable to Navios Holdings common
stockholders |
$ |
1.32 |
|
$ |
(3.53) |
Weighted average
number of shares, basic |
|
12,219,884 |
|
|
12,297,560 |
Diluted
earnings/(loss) per share attributable to Navios Holdings common
stockholders |
$ |
1.22 |
|
$ |
(3.53) |
Weighted average
number of shares, diluted |
|
13,377,117 |
|
|
12,297,560 |
(1) |
Includes expenses of Navios Logistics of $12.6 million and $14.8
million for the three month period ended March 31, 2019 and 2018,
respectively. Also includes expenses of Navios Containers of $15.9
million for the three month period ended March 31, 2019. |
(2) |
Includes expenses of Navios Logistics of $3.8 million and $3.9
million for the three month period ended March 31, 2019 and 2018,
respectively. Also includes expenses of Navios Containers of $2.5
million for the three month period ended March 31, 2019. |
|
NAVIOS MARITIME HOLDINGS INC. |
Other Financial Data |
|
|
|
|
|
|
|
|
|
March 31,2019 |
|
|
December 31,2018 |
|
|
(unaudited) |
|
|
(unaudited) |
ASSETS |
|
|
|
|
|
Cash and cash equivalents,
including restricted cash |
$ |
129,358 |
|
$ |
150,774 |
Vessels, port terminal and other
fixed assets, net |
|
1,867,810 |
|
|
1,898,455 |
Goodwill and other
intangibles |
|
292,138 |
|
|
299,273 |
Operating lease assets |
|
349,100 |
|
|
— |
Other current and non-current
assets |
|
354,774 |
|
|
333,994 |
Total
assets |
$ |
2,993,180 |
|
$ |
2,682,496 |
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
Long-term, debt, including
current portion |
|
531,957 |
|
|
543,899 |
Senior and ship mortgage notes,
net |
|
1,247,052 |
|
|
1,272,108 |
Operating lease liabilities,
current portion |
|
92,438 |
|
|
— |
Operating lease liabilities, net
of current portion |
|
270,109 |
|
|
— |
Other current and non-current
liabilities |
|
342,764 |
|
|
344,809 |
Total stockholders’ equity |
|
508,860 |
|
|
521,680 |
Total liabilities and
stockholders’ equity |
$ |
2,993,180 |
|
$ |
2,682,496 |
|
|
|
|
|
|
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
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 income/(loss) attributable
to Navios Holdings' common stockholders before interest and finance
costs, before depreciation and amortization, before income taxes
and before stock-based compensation. Adjusted EBITDA represents
EBITDA, excluding certain items as described under “Earnings
Highlights”. We use EBITDA and Adjusted EBITDA as liquidity
measures and reconcile EBITDA and Adjusted EBITDA to net cash
provided by operating activities, the most comparable U.S. GAAP
liquidity measure. EBITDA is calculated as follows: net cash
provided by operating activities adding back, when applicable and
as the case may be, the effect of (i) net increase/(decrease) in
operating assets, (ii) net (increase)/decrease in operating
liabilities, (iii) net interest cost, (iv) deferred 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 and bargain gain,
(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.
We present Adjusted Net Income/(Loss) attributable to Navios
Holdings’ common stockholders because we believe it assists
investors and analysts in comparing our operating performance
across reporting periods on a consistent basis by excluding items
that we do not believe are indicative of our core operating
performance. Our presentation of Adjusted Net Income/(Loss)
attributable to Navios Holdings’ common stockholders adjusts net
income/(loss) attributable to Navios Holdings’ common stockholders
for the items described above under “Earnings Highlights”.
The definition of Adjusted Net Income/(Loss) used here may not be
comparable to that used by other companies due to differences in
methods of calculation.
Adjusted Basic Loss attributable to Navios Holdings’ common
stockholders Per Share is defined as Adjusted Loss attributable to
Navios Holdings’ common stockholders divided by the weighted
average number of shares for each of the periods presented.
The following tables provide a reconciliation of
EBITDA and Adjusted EBITDA of Navios Holdings (including Navios
Logistics and Navios Containers) and EBITDA of Navios Logistics and
Navios Containers on a stand-alone basis:
|
Navios
Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from
Operations |
|
|
March 31, |
|
March 31, |
Three Months
Ended |
2019 |
|
2018 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net cash provided by operating
activities |
$ |
18,323 |
|
$ |
17,806 |
Net increase in operating
assets |
|
7,610 |
|
|
3,622 |
Net decrease/(increase) in
operating liabilities |
|
13,218 |
|
|
(21,635) |
Net interest cost |
|
34,397 |
|
|
31,810 |
Deferred finance charges |
|
(1,857) |
|
|
(1,642) |
Provision for losses on
accounts receivable |
|
(576) |
|
|
(433) |
Equity in affiliates, net of
dividends received |
|
3,240 |
|
|
(6,937) |
Payments for drydock and
special survey costs |
|
4,123 |
|
|
5,100 |
Noncontrolling interest |
|
(1,688) |
|
|
379 |
Other gain on assets |
|
— |
|
|
28 |
Impairment losses on sale of
vessels |
|
(5,531) |
|
|
(6,715) |
Amortization of operating
lease assets |
|
(23,919) |
|
|
— |
Gain on bond
extinguishment |
|
15,662 |
|
|
— |
EBITDA |
$ |
63,002 |
|
$ |
21,383 |
Impairment losses on sale of
vessels |
|
5,531 |
|
|
6,715 |
Adjusted
EBITDA |
$ |
68,533 |
|
$ |
28,098 |
Three Month
Period Ended(in thousands of U.S.
dollars) |
March 31, 2019 |
|
March 31, 2018 |
|
(unaudited) |
|
(unaudited) |
Net cash provided by operating activities |
$ |
18,323 |
|
$ |
17,806 |
Net cash used in investing
activities |
$ |
(6,606) |
|
$ |
(17,500) |
Net cash used in financing
activities |
$ |
(33,133) |
|
$ |
(12,643) |
Adjusted EBITDA breakdown |
|
|
March 31, |
|
March 31, |
Three Months Ended |
2019 |
|
2018 |
(in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Adjusted
EBITDA from core shipping operations |
$ |
29,735 |
|
$ |
17,377 |
Navios Logistics (including noncontrolling
interest) |
|
22,243 |
|
|
17,185 |
Navios Containers (including noncontrolling
interest) |
|
12,278 |
|
|
— |
Equity in net earnings/(losses) of affiliated
companies |
|
4,277 |
|
|
(6,464) |
Adjusted EBITDA |
$ |
68,533 |
|
$ |
28,098 |
Navios Logistics EBITDA Reconciliation to Net
Income/(Loss) |
|
|
|
|
|
|
|
|
March 31, |
|
March 31, |
Three Months
Ended |
2019 |
|
2018 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
Net lncome/(loss) |
$ |
5,305 |
|
$ |
(1,047) |
Depreciation and
amortization |
|
7,346 |
|
|
7,228 |
Amortization of deferred
drydock and special survey costs |
|
1,326 |
|
|
1,890 |
Interest expense and finance
cost, net |
|
9,838 |
|
|
9,245 |
Income tax
expense/(benefit) |
|
347 |
|
|
(510) |
EBITDA |
$ |
24,162 |
|
$ |
16,806 |
Navios Containers Reconciliation of EBITDA to
Cash from Operations |
|
|
|
Three Months
Ended |
March 31,2019 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
|
|
Net cash used in operating
activities |
$ |
(37) |
Net increase in operating
assets |
|
3,865 |
Net decrease in operating
liabilities |
|
2,018 |
Net interest cost |
|
3,553 |
Deferred finance charges |
|
(59) |
Payments for drydock and
special survey costs |
|
2,707 |
EBITDA |
$ |
12,047 |
|
|
|
|
EXHIBIT II |
|
Owned Vessels |
|
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metric tons) |
Navios Serenity |
|
Handysize |
|
2011 |
|
34,690 |
Navios Vector (1) |
|
Ultra Handymax |
|
2002 |
|
50,296 |
Navios Mercator (1) |
|
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 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 |
N Amalthia |
|
Panamax |
|
2006 |
|
75,318 |
Navios Galileo |
|
Panamax |
|
2006 |
|
76,596 |
N Bonanza |
|
Panamax |
|
2006 |
|
76,596 |
Navios Avior |
|
Panamax |
|
2012 |
|
81,355 |
Navios Centaurus |
|
Panamax |
|
2012 |
|
81,472 |
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 |
|
|
|
|
|
|
|
(1) Agreed to be sold
|
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 Mercury |
|
Ultra Handymax |
|
2013 |
|
61,393 |
|
Yes |
Navios Venus |
|
Ultra Handymax |
|
2015 |
|
61,339 |
|
Yes |
Navios Marco Polo |
|
Panamax |
|
2011 |
|
80,647 |
|
Yes |
Navios Southern Star |
|
Panamax |
|
2013 |
|
82,224 |
|
Yes |
Sea Victory (TBN Navios
Victory) |
|
Panamax |
|
2014 |
|
77,095 |
|
Yes (4) |
Elsa S |
|
Panamax |
|
2015 |
|
80,954 |
|
No |
Navios Amber |
|
Panamax |
|
2015 |
|
80,994 |
|
Yes |
Navios Sky |
|
Panamax |
|
2015 |
|
82,056 |
|
Yes |
Navios Coral |
|
Panamax |
|
2016 |
|
84,904 |
|
Yes |
Navios Citrine |
|
Panamax |
|
2017 |
|
81,626 |
|
Yes |
Navios Dolphin |
|
Panamax |
|
2017 |
|
81,630 |
|
Yes |
Mont Blanc Hawk |
|
Panamax |
|
2017 |
|
81,638 |
|
No |
Cassiopeia Ocean |
|
Panamax |
|
2018 |
|
82,069 |
|
No |
Navios Gemini |
|
Panamax |
|
2018 |
|
81,704 |
|
No (3) |
Navios Horizon I |
|
Panamax |
|
2019 |
|
81,692 |
|
No (3) |
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 |
|
|
|
|
|
|
|
|
|
|
Bareboat-in Fleet to be delivered |
|
Vessel Name |
|
Vessel Type |
|
Delivery date |
|
Deadweight (in metric tons) |
|
Purchase Option(1) |
Navios Herakles I |
|
Panamax |
|
Q3 2019 |
|
81,000 |
|
Yes |
Navios Felicity I |
|
Panamax |
|
Q4 2019 |
|
81,000 |
|
Yes |
Navios Uranus |
|
Panamax |
|
Q4 2019 |
|
81,600 |
|
Yes |
Navios Galaxy II |
|
Panamax |
|
Q1 2020 |
|
81,600 |
|
Yes |
Navios Magellan II |
|
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 acquired. |
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