Navios Maritime Holdings Inc. (“Navios Holdings” or the “Company”)
(NYSE: NM), a global seaborne shipping and logistics company, today
reported financial results for the second quarter and six months
ended June 30, 2021.
Angeliki Frangou, Chairman and Chief Executive Officer, stated,
“I am pleased with the results for the second quarter of 2021. In
the second quarter, Navios Holdings reported revenue of $143.6
million, Adjusted EBITDA of $85.9 million and Adjusted Net Income
of $30.3 million.”
Angeliki Frangou, continued, “The dry bulk market is strong,
supported by rates across different vessel types. Capesize rates
are around $50,000 and Panamax and Supramax about $35,000
per day. We are optimistic that healthy rates will remain in the
near term as demand for dry bulk commodities is robust while the
logistics chain continues to be challenged.”
HIGHLIGHTS – RECENT DEVELOPMENTS
Debt Reduction
Year to date, Navios Holdings repaid approximately $251.4
million of outstanding debt. The amount consists of (a) $100.0
million redemption of 11.25% Senior Secured Notes; (b) $21.4
million repurchase of 7.375% First Priority Ship Mortgage Notes;
(c) $130.0 million in repayment of other credit facilities, from
which $70.0 million repayment related to the Navios Logistics loan
(as discussed further below) and $60.0 million net repayment
related to other credit facilities. The $60.0 million net repayment
consists of $135.3 million in repayments of credit facilities and
sale and leaseback agreements; partially offset by $75.3 million
additional loan from N Shipmanagement Acquisition Corp. and related
entities (“NSM”).
On July 13, 2021, the Company’s $70.0 million loan, plus accrued
interest, owed to Grimaud Ventures S.A (“Grimaud”), a wholly-owned
subsidiary of Navios South American Logistics Inc. (“Navios
Logistics”), was repaid by the Company in full through the issuance
of 9,301,542 shares of the Company’s common stock and $7.5 million
in cash.
On July 30, 2021, Navios Logistics declared and paid a pro rata
dividend to the holders of its common equity in shares of Grimaud.
Immediately thereafter, Grimaud redeemed the equity interests held
by its non-controlling shareholder in full at fair market value.
Grimaud is now an indirect wholly-owned subsidiary of the Company,
and its equity interests are pledged as collateral under the 2022
Senior Secured Notes (as defined below).
Navios Partners’ Merger
On August 26, 2021, Navios Maritime Partners L.P. (“Navios
Partners”) announced a definitive transaction agreement providing
for a combination of Navios Partners and Navios Maritime
Acquisition Corporation (“Navios Acquisition”) in a transaction in
which public shareholders of Navios Acquisition will receive 0.1275
of a common unit of Navios Partners for each outstanding common
share of Navios Acquisition. All of Navios Acquisition’s
outstanding 8.125% First Priority Ship Mortgage Notes, due on
November 15, 2021 (the “Ship Mortgage Notes”), are being redeemed
in accordance with their terms with the proceeds of a cash
contribution from Navios Partners and newly arranged secured term
loan financings (the “Transaction”). The merger is expected to
close in the fourth quarter of 2021 upon completion of certain
customary conditions. After the completion of the merger, Navios
Holdings expects to have a 10.3% ownership interest in Navios
Partners. As of September 1, 2021, pro-forma of the merger, the
value of Navios Holdings’ investment in Navios Partners was $95.8
million.
Vessel Sales
In June 2021, the Company agreed to sell to Navios Partners the
Navios Azimuth, a 2011-built Capesize vessel of 179,169 dwt, the
Navios Ray, a 2012-built Capesize vessel of 179,515 dwt, and the
Navios Bonavis, a 2009-built Capesize vessel of 180,022 dwt for an
aggregate sales price of $88.0 million. The sale of (i) the Navios
Bonavis and the Navios Ray was completed in June 2021, and (ii) the
Navios Azimuth was completed in July 2021.
In June 2021, the Company completed the sale to Navios Partners
of a 2011-built Capesize vessel of 181,415 dwt, that was previously
chartered-in. The net sale proceeds were $8.5 million.
In June 2021, the Company completed the sale of the Navios
Serenity, a 2011-built Handysize vessel of 34,690 dwt, to an
unrelated third party for a sale price of $10.6 million.
Bond Maturities
Our 7.375% First Priority Ship Mortgage Notes mature in January
2022 (the “2022 Notes”). Our 11.25% Senior Secured Notes mature in
August 2022 (the “2022 Senior Secured Notes”).
In June 2021, Navios Holdings entered into a supplemental
indenture which eliminated the Company’s obligation to make a
springing maturity offer for the 2022 Senior Secured Notes upon the
redemption, at par, of $100.0 million in aggregate principal amount
of the 2022 Senior Secured Notes (the “Redemption”). The
Redemption, which was funded through (i) the sale of the Navios
Azimuth, previously pledged as collateral in respect of the 2022
Senior Secured Notes and (ii) the borrowing of $75.3 million from a
subsidiary of NSM, was completed on July 23, 2021.
Year to date, Navios Holdings has repurchased $21.4 million in
par value of the 2022 Notes.
Although Navios Holdings is currently attempting to address
these upcoming maturities and create additional liquidity to fund
working capital requirements through the sale of assets and
refinancing plans, there can be no assurance it will be successful
in such attempts, or that any such attempts will be consummated on
terms satisfactory to us, or at all.
Fleet Statistics
Navios Holdings controls a fleet of 38 vessels
totaling 4.1 million dwt, of which 25 are owned (including five
bareboat-in vessels) and 13 are chartered-in under long-term
charters (collectively, the "Core Fleet"). The fleet consists of 12
Capesize, 21 Panamax, four Ultra-Handymax and one Handysize
vessels, with an average age of 8.6 years.
Navios Holdings has currently chartered-out
80.5% of available days for the remaining six months of 2021. 50.0%
of these available days are chartered-out on fixed rate and 30.5%
are chartered-out on index.
The average contracted daily charter-in rate for
the long-term charter-in vessels for the remaining six months of
2021 is $16,441 per day.
The above figures do not include the fleet of
Navios Logistics.
Exhibit II provides certain details of the Core
Fleet of Navios Holdings. It does not include the fleet of Navios
Logistics.
Non-GAAP Measures
EBITDA, Adjusted EBITDA, Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’
common stockholders per share are non-U.S. GAAP financial measures
and should not be used in isolation or as substitution for Navios
Holdings’ results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, “Disclosure of
Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted
EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’
common stockholders and Adjusted Basic Earnings/(Loss) attributable
to Navios Holdings’ common stockholders per share of Navios
Holdings (including Navios Logistics), and EBITDA of Navios
Logistics (on a stand-alone basis) and a reconciliation of such
measures to the most comparable measures calculated under U.S.
GAAP.
Earnings
Highlights
Second Quarter 2021 and 2020 Results (in
thousands of U.S. dollars, except per share data and unless
otherwise stated):
The second quarter 2021 and 2020 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, 2021 |
|
June 30, 2020 |
|
(unaudited) |
|
(unaudited) |
Revenue |
$ |
143,624 |
|
|
$ |
97,127 |
|
Net Income/(Loss) attributable
to Navios Holdings’ common stockholders |
$ |
24,936 |
|
|
$ |
(35,271) |
|
Adjusted Net Income/ (Loss)
attributable to Navios Holdings’ common stockholders |
$ |
30,342 |
(1) |
|
$ |
(25,032) |
(2) |
Net cash provided by operating
activities |
$ |
26,037 |
|
|
$ |
7,012 |
|
EBITDA |
$ |
80,536 |
|
|
$ |
16,945 |
|
Adjusted EBITDA |
$ |
85,942 |
(1) |
|
$ |
27,184 |
(2) |
Basic Earnings/ (Loss)
attributable to Navios Holdings’ common stockholders per share |
$ |
1.80 |
|
|
$ |
(2.83) |
|
Adjusted Basic Earnings/
(Loss) attributable to Navios Holdings’ common stockholders per
share |
$ |
2.21 |
(1) |
|
$ |
(2.04) |
(2) |
(1) |
Adjusted EBITDA, Adjusted Net Income and Adjusted Basic Earnings
attributable to Navios Holdings’ common stockholders for the three
month period ended June 30, 2021 exclude $5.4 million in impairment
losses relating to four drybulk vessels. |
(2) |
Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per
share attributable to Navios Holdings’ common stockholders for the
three month period ended June 30, 2020 exclude (i) $9.0 million in
impairment losses relating to two drybulk vessels; and (ii) $1.3
million in non-cash vessel impairment losses incurred by our
affiliate companies. |
|
|
Revenue from the Dry Bulk Vessel Operations for the three month
period ended June 30, 2021 increased by $47.8 million, or 124.7%,
to $86.1 million, as compared to $38.3 million for the same period
during 2020. The increase in dry bulk revenue was mainly
attributable to the increase in the time charter and freight market
during three month period ended June 30, 2021. The TCE per day
increased by 175.6% to $21,572 per day in the three month period
ended June 30, 2021, as compared to $7,827 per day in the same
period of 2020.
Revenue from the Logistics Business was $57.6
million for the three month period ended June 30, 2021, as compared
to $58.8 million for the same period in 2020. The decrease was
mainly attributable to (i) a $4.4 million decrease in revenue from
the cabotage business mainly due to fewer operating days; (ii) a
$3.1 million decrease in sales of products due to the decrease in
the Paraguayan liquid port’s volume of products sold; and (iii) a
$0.3 million decrease in revenue from the port terminal business
mainly due to lower volumes transshipped in the grain port
terminal. The overall decrease was partially mitigated by a $6.6
million increase in revenue from the barge business mainly due to a
$7.8 million increase in CoA/voyage revenues related to higher
liquid cargo moved, partially mitigated by a $1.1 million decrease
in time charter revenues mainly due to a decrease in time charter
rates.
Net Income attributable to Navios Holdings’
common stockholders was $24.9 million for the three month period
ended June 30, 2021, as compared to a $35.3 million Net Loss
attributable to Navios Holdings’ common stockholders for the same
period in 2020. Net Income attributable to Navios Holdings’ common
stockholders was affected by items described in the table above.
Excluding these items, Adjusted Net Income attributable to Navios
Holdings’ common stockholders for the three month period ended June
30, 2021 was $30.3 million, as compared to $25.0 million Adjusted
Net Loss attributable to Navios Holdings’ common stockholders for
the same period in 2020. This decrease in Adjusted Net Loss was
mainly due to (i) a $58.8 million increase in Adjusted EBITDA as
discussed in the paragraph below; (ii) a $2.0 million decrease in
depreciation and amortization; and (iii) a $0.2 million decrease in
stock-based compensation expense. This overall decrease of $61.0
million was partially mitigated by (i) a $4.8 million increase in
interest expense and finance cost, net, mainly due to the higher
weighted average interest rate at Navios Logistics due to the
issuance of the 10.75% Notes due 2025; (iii) a $0.6 million
decrease in income tax benefit; and (iii) a $0.2 million increase
in amortization of deferred drydock, special survey and other
capitalized items.
Net Loss of Navios Logistics, on a standalone
basis, was $1.1 million for the three month period ended June 30,
2021 as compared to $12.0 million of Net Income for the same period
in 2020.
Adjusted EBITDA of Navios Holdings for the three
month period ended June 30, 2021 increased by $58.8 million to
$85.9 million, as compared to $27.2 million for the same period in
2020. The increase in Adjusted EBITDA was primarily due to (i) a
$46.5 million increase in revenue; (ii) a $5.9 million decrease in
time charter, voyage and logistics business expenses; (iii) a $4.7
million decrease in net income attributable to noncontrolling
interest; (iv) a $2.1 million increase in equity in net earnings
from affiliate companies; (v) a $1.9 million increase in gain on
bond extinguishment; (vi) a $0.6 million decrease in other expense,
net; and (vii) a $0.1 million decrease in general and
administrative expenses (excluding stock-based compensation
expenses). This overall increase of $61.8 million was partially
mitigated by a $3.0 million increase in direct vessel expenses
(excluding the amortization of deferred drydock, special survey
costs and other capitalized items).
EBITDA of Navios Logistics, on a standalone
basis, was $21.4 million for the three month period ended June 30,
2021, as compared to $27.0 million for the same period in 2020.
First Half 2021 and 2020 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, 2021 and 2020 presented below was derived from the
unaudited condensed consolidated financial statements for the
respective periods.
|
Six Month
Period Ended |
|
Six Month Period Ended |
|
June 30, 2021 |
|
June 30, 2020 |
|
(unaudited) |
|
(unaudited) |
Revenue |
$ |
260,575 |
|
|
$ |
188,210 |
|
Net Income/(Loss) attributable
to Navios Holdings’ common stockholders |
$ |
25,099 |
|
|
$ |
(88,546) |
|
Adjusted Net Income/ (Loss)
attributable to Navios Holdings’ common stockholders |
$ |
25,108 |
(1) |
|
$ |
(48,787) |
(2) |
Net cash (used in)/ provided
by operating activities |
$ |
(1,365) |
|
|
$ |
5,530 |
|
EBITDA |
$ |
135,128 |
|
|
$ |
16,173 |
|
Adjusted EBITDA |
$ |
135,137 |
(1) |
|
$ |
55,932 |
(2) |
Basic Earnings/ (Loss)
attributable to Navios Holdings’ common stockholders per share |
$ |
1.72 |
|
|
$ |
(7.06) |
|
Adjusted Basic Earnings/
(Loss) attributable to Navios Holdings’ common stockholders per
share |
$ |
1.72 |
(1) |
|
$ |
(3.99) |
(3) |
(1) |
Adjusted EBITDA, Adjusted Net Income and Adjusted Basic Earnings
attributable to Navios Holdings’ common stockholders for the six
month period ended June 30, 2021 exclude (i) $25.9 million in
equity income in affiliate companies due to Navios Partners' Merger
effected on March 31, 2021; and (ii) approximately $25.9 million in
impairment losses relating to seven drybulk vessels. |
(2) |
Adjusted EBITDA and Adjusted Net Loss attributable to Navios
Holdings’ common stockholders for the six month period ended June
30, 2020 exclude (i) $20.2 million in impairment losses relating to
four drybulk vessels; (ii) $12.7 million other-than-temporary
impairment (“OTTI”) loss and impairment losses of loan receivable
in relation to Navios Europe II; (iii) $5.6 million in non-cash
impairment losses incurred by our affiliate companies relating to
their investment in Navios Europe II; and (iv) $1.3 million in
non-cash vessel impairment losses incurred by our affiliate
companies. |
(3) |
Adjusted Basic Loss attributable to Navios Holdings’ common
stockholders per share for the six month period ended June 30, 2020
excludes the items referred in footnote (2) above as well as a gain
of $0.2 million related to the conversion of accrued dividends on
private preferred stock to common stock. |
|
|
Revenue from the Dry Bulk Vessel Operations for
the six month period ended June 30, 2021 increased by $77.2
million, or 106.4%, to $149.8 million, as compared to $72.6 million
for the same period during 2020. The increase in dry bulk revenue
was mainly attributable to the increase in the time charter and
freight market during six month period ended June 30, 2021. The TCE
per day increased by 139.7% to $17,862 per day in the six month
period ended June 30, 2021, as compared to $7,451 per day in the
same period of 2020.
Revenue from the Logistics Business was $110.8
million for the six month period ended June 30, 2021, as compared
to $115.6 million for the same period in 2020. The decrease was
mainly attributable to (i) a $7.8 million decrease in sales of
products due to the decrease in the Paraguayan liquid port’s volume
of products sold; and (ii) a $6.4 million decrease in revenue from
the cabotage business mainly due to lower time charter rates
affected by market conditions and fewer operating days. The overall
decrease was partially mitigated by (i) a $6.7 million increase in
revenue from the barge business mainly due to a $13.8 million
increase in CoA/voyage revenues related to higher CoA/voyage
revenues of convoys previously under time charter contracts,
partially mitigated by a $7.2 million decrease in time charter
revenues mainly due to the expiration of certain legacy time
charter contracts; and (ii) a $2.7 million increase in revenue from
the port terminal business mainly due to higher volumes
transshipped in the grain port terminal.
Net Income attributable to Navios Holdings’
common stockholders was $25.1 million for the six month period
ended June 30, 2021, as compared to $88.5 million Net Loss
attributable to Navios Holdings’ common stockholders for the same
period in 2020. Net Income attributable to Navios Holdings’ common
stockholders was affected by items described in the table above.
Excluding these items, Adjusted Net Income attributable to Navios
Holdings’ common stockholders for the six month period ended June
30, 2021 was approximately $25.1 million, as compared to $48.8
million Adjusted Net Loss attributable to Navios Holdings’ common
stockholders for the same period in 2020. This decrease in Adjusted
Net Loss was mainly due to (i) a $79.2 million increase in Adjusted
EBITDA as discussed in the paragraph below; (ii) a $3.8 million
decrease in depreciation and amortization; (iii) a $0.3 million
decrease in stock-based compensation expense; and (iv) a $0.2
million increase in income tax benefit. This overall decrease of
$83.5 million was partially mitigated by (i) a $9.3 million
increase in interest expense and finance cost, net, mainly due to
the higher weighted average interest rate of Navios Logistics due
to the issuance of the 10.75% Notes due 2025; and (ii) a $0.3
million increase in amortization of deferred drydock, special
survey and other capitalized items.
Net Income of Navios Logistics, on a standalone
basis, was $2.1 million for the six month period ended June 30,
2021 as compared to $19.0 million for the same period in 2020.
Adjusted EBITDA of Navios Holdings for the six
month period ended June 30, 2021 increased by $79.2 million to
$135.1 million, as compared to $55.9 million for the same period in
2020. The increase in Adjusted EBITDA was primarily due to (i) a
$72.4 million increase in revenue; (ii) a $14.2 million decrease in
time charter, voyage and logistics business expenses; (iii) a $6.1
million decrease in net income attributable to noncontrolling
interest; (iv) a $1.9 million decrease in other expense, net; and
(v) a $0.1 million decrease in general and administrative expenses
(excluding stock-based compensation expenses). This overall
increase of $94.7 million was partially mitigated by (i) a $9.3
million decrease in gain on bond extinguishment; (ii) a $4.1
million increase in direct vessel expenses (excluding the
amortization of deferred drydock, special survey costs and other
capitalized items); and (iii) a $2.1 million decrease in equity in
net earnings from affiliate companies.
EBITDA of Navios Logistics, on a standalone
basis, was $44.7 million for the six month period ended June 30,
2021, as compared to $49.2 million for the same period in 2020.
Fleet Summary Data:
The following table reflects certain key
indicators indicative of the performance of Navios Holdings' dry
bulk operations (excluding the Navios Logistics’ fleet) and its
fleet performance for the three and six month periods ended June
30, 2021 and 2020, 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, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Available Days (1) |
|
3,916 |
|
|
4,536 |
|
|
8,118 |
|
|
9,172 |
Operating Days (2) |
|
3,907 |
|
|
4,507 |
|
|
8,088 |
|
|
9,104 |
Fleet Utilization (3) |
|
99.8% |
|
|
99.4% |
|
|
99.6% |
|
|
99.3% |
Equivalent Vessels (4) |
|
43 |
|
|
50 |
|
|
45 |
|
|
50 |
TCE (5) |
$ |
21,572 |
|
$ |
7,827 |
|
$ |
17,862 |
|
$ |
7,451 |
(1) |
Available days are the total number of days a vessel is controlled
by a company less the aggregate number of days that the vessel is
off-hire due to major repairs or repairs under guarantee, vessel
upgrades, drydocking or special surveys and ballast days relating
to voyages. The shipping industry uses available days to measure
the number of days in a period during which vessels should be
capable of generating revenues. |
(2) |
Operating days are the number of available days in a period less
the aggregate number of days that the vessels are off-hire due to
any reason, including unforeseen circumstances. |
(3) |
Fleet utilization is the percentage of time that Navios Holdings’
vessels were available for generating revenue, and is determined by
dividing the number of operating days during a relevant period by
the number of available days during that period. |
(4) |
Equivalent Vessels are defined as the available days of the fleet
divided by the number of the calendar days in the period. |
(5) |
TCE rates are defined as voyage and time charter revenues less
voyage expenses during a period divided by the number of available
days during the period. The TCE rate is a standard shipping
industry performance measure used primarily to present the actual
daily earnings generated by vessels on various types of contracts
for the number of available days of the fleet. |
|
|
Conference Call:
As previously announced, Navios Holdings will
host a conference call today, September 2, 2021, 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 month period ended June 30, 2021.
A supplemental slide presentation will be
available on the Navios Holdings website at www.navios.com under
the "Investors" section by 8:00 am ET on the day of the call.
Conference Call details:
Call Date/Time: Thursday, September 2, 2021 at 8:30 am ET
Call Title: Navios Holdings Q2 2021 Financial
Results Conference CallUS Dial In: +1.877.876.9173International
Dial In: +1.785.424.1667Conference ID: NMQ221 or 667221
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:
+1.800.753.9197International Replay Dial In:
+1.402.220.0689Conference ID: NMQ221 or 667221
This call will be simultaneously Webcast. The
Webcast will be available on the Navios Holdings website,
www.navios.com, under the "Investors" section. The Webcast will be
archived and available at the same Web address for two weeks
following the call.
About Navios Maritime Holdings
Inc.
Navios Maritime Holdings Inc. (NYSE: NM) is a
global seaborne shipping and logistics company focused on the
transport and transshipment of dry bulk commodities including iron
ore, coal and grain. For more information about Navios Holdings,
please visit our website: www.navios.com.
About Navios South American Logistics
Inc.
Navios South American Logistics Inc. is one of
the largest logistics companies in the Hidrovia region of South
America, focusing on the Hidrovia region river system, the main
navigable river system in the region, and on cabotage trades along
the eastern coast of South America. Navios Logistics serves the
storage and marine transportation needs of its petroleum,
agricultural and mining customers through its port terminals, river
barge and coastal cabotage operations. For more information about
Navios Logistics, please visit its website:
www.navios-logistics.com.
About Navios Maritime Partners
L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is a
publicly traded master limited partnership which owns and operates
dry cargo vessels. For more information, please visit its website
at www.navios-mlp.com.
About Navios Maritime Acquisition
Corporation
Navios Maritime Acquisition Corporation (NYSE:
NNA) is an owner and operator of tanker vessels focusing on the
transportation of petroleum products (clean and dirty) and bulk
liquid chemicals. For more information about Navios Acquisition,
please visit its website: www.navios- acquisition.com.
Forward Looking Statements - Safe
Harbor
This press release and our earnings call contain and will
contain forward-looking statements (as defined in Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended) concerning future
events, including our ability to refinance our near-term debt
maturities, expected cash flow generation, expected timing,
completion and effects of the Navios Partners/Navios Acquisition
transaction, future contracted revenues, potential capital gains,
our ability to take advantage of dislocation in the market and any
market recovery, and Navios Holdings' growth strategy and measures
to implement such strategy; including expected vessel acquisitions
and entering into further time charters. Words such as
“may,” “expects,” “intends,” “plans,” “believes,” “anticipates,”
“hopes,” “estimates,” and variations of such words and similar
expressions are intended to identify forward-looking statements.
Such statements include comments regarding expected revenue and
time charters. These forward-looking statements are based on the
information available to, and the expectations and assumptions
deemed reasonable by Navios Holdings at the time these statements
were made. Although Navios Holdings believes that the expectations
reflected in such forward-looking statements are reasonable, no
assurance can be given that such expectations will prove to have
been correct. These statements involve known and unknown risks and
are based upon a number of assumptions and estimates, which are
inherently subject to significant uncertainties and contingencies,
many of which are beyond the control of Navios Holdings. Actual
results may differ materially from those expressed or implied by
such forward-looking statements. Factors that could cause actual
results to differ materially include, but are not limited to risks
relating to: global and regional economic and political conditions
including the impact of the COVID-19 pandemic and efforts
throughout the world to contain its spread, including effects on
global economic activity; demand for seaborne transportation of the
products we ship; the ability and willingness of charterers to
fulfill their obligations to us; prevailing charter rates;
shipyards performing scrubber installations, drydocking and
repairs; changing vessel crews and availability of financing;
potential disruption of shipping routes due to accidents, diseases,
pandemics, political events, piracy or acts by terrorists,
including the impact of the COVID-19 pandemic and the ongoing
efforts throughout the world to contain it; uncertainty relating to
global trade, including prices of seaborne commodities and
continuing issues related to seaborne volume and ton miles; our
continued ability to enter into long-term time charters; our
ability to maximize the use of our vessels; expected demand in the
dry cargo shipping sector in general and the demand for our
Panamax, Capesize, Ultra Handymax and Handysize vessels in
particular; the aging of our fleet and resultant increases in
operations costs; the loss of any customer or charter or vessel;
the financial condition of our customers; changes in the
availability and costs of funding due to conditions in the bank
market, capital markets and other factors; increases in costs and
expenses, including but not limited to: crew wages, insurance,
provisions, port expenses, lube oil, bunkers, repairs, maintenance,
and general and administrative expenses; the expected cost of, and
our ability to comply with, governmental regulations and maritime
self-regulatory organization standards, as well as standard
regulations imposed by our charterers applicable to our business,
general domestic and international political conditions;
competitive factors in the market in which Navios Holdings
operates; the value of our publicly traded subsidiaries; risks
associated with operations outside the United States; and other
factors listed from time to time in Navios Holdings' filings with
the Securities and Exchange Commission, including its Forms 20-F
and Forms 6-K. Navios Holdings expressly disclaims any obligations
or undertaking to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change
in Navios Holdings' expectations with respect thereto or any change
in events, conditions or circumstances on which any statement is
based. Navios Holdings makes no prediction or statement about the
performance of its common stock or debt securities.
Contact:
Navios Maritime Holdings
Inc.+1.212.906.8643investors@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 EndedJune 30,
2021 |
|
Three MonthPeriod EndedJune 30,
2020 |
|
|
Six MonthPeriod EndedJune 30,
2021 |
|
Six MonthPeriod EndedJune 30,
2020 |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Revenue |
$ |
143,624 |
|
$ |
97,127 |
|
$ |
260,575 |
|
$ |
188,210 |
Time charter, voyage and
logistics business expenses |
|
(36,841) |
|
|
(42,710) |
|
|
(75,168) |
|
|
(89,354) |
Direct vessel expenses(1) |
|
(29,232) |
|
|
(26,007) |
|
|
(55,147) |
|
|
(50,738) |
General and administrative
expenses(2) |
|
(8,544) |
|
|
(8,836) |
|
|
(15,363) |
|
|
(15,798) |
Depreciation and
amortization |
|
(15,988) |
|
|
(18,012) |
|
|
(32,254) |
|
|
(36,088) |
Interest expense and finance
cost, net |
|
(36,170) |
|
|
(31,418) |
|
|
(72,370) |
|
|
(63,061) |
Impairment loss/ loss on sale
of vessels, net |
|
(5,406) |
|
|
(8,967) |
|
|
(25,861) |
|
|
(20,215) |
Gain on bond
extinguishment |
|
1,873 |
|
|
— |
|
|
1,873 |
|
|
11,204 |
Other expense, net |
|
(1,022) |
|
|
(1,593) |
|
|
(1,246) |
|
|
(3,154) |
Impairment of loan receivable
from affiliate company |
|
— |
|
|
— |
|
|
— |
|
|
(6,050) |
Income/ (Loss) before
equity in net earnings of affiliate companies |
$ |
12,294 |
|
$ |
(40,416) |
|
$ |
(14,961) |
|
$ |
(85,044) |
Equity in net earnings of
affiliate companies |
|
12,854 |
|
|
9,445 |
|
|
40,594 |
|
|
3,308 |
Income/ (Loss) before
taxes |
$ |
25,148 |
|
$ |
(30,971) |
|
$ |
25,633 |
|
$ |
(81,736) |
Income tax (expense)/
benefit |
|
(603) |
|
|
34 |
|
|
226 |
|
|
73 |
Net income/
(loss) |
$ |
24,545 |
|
$ |
(30,937) |
|
$ |
25,859 |
|
$ |
(81,663) |
Less: Net loss/ (income)
attributable to the noncontrolling interest |
|
391 |
|
|
(4,334) |
|
|
(760) |
|
|
(6,883) |
Net income/ (loss)
attributable to Navios Holdings common stockholders |
$ |
24,936 |
|
$ |
(35,271) |
|
$ |
25,099 |
|
$ |
(88,546) |
Income/ (Loss)
attributable to Navios Holdings common stockholders, basic and
diluted |
$ |
23,652 |
|
$ |
(36,555) |
|
$ |
22,538 |
|
$ |
(90,958) |
Basic earnings/ (loss)
per share attributable to Navios Holdings common
stockholders |
$ |
1.80 |
|
$ |
(2.83) |
|
$ |
1.72 |
|
$ |
(7.06) |
Weighted average
number of shares, basic |
|
13,127,208 |
|
|
12,901,880 |
|
|
13,120,335 |
|
|
12,882,235 |
Basic diluted
earnings/ (loss) per share attributable to Navios Holdings common
stockholders |
$ |
1.75 |
|
$ |
(2.83) |
|
$ |
1.67 |
|
$ |
(7.06) |
Weighted average
number of shares, diluted |
|
13,511,627 |
|
|
12,901,880 |
|
|
13,508,382 |
|
|
12,882,235 |
(1) |
Includes expenses of Navios Logistics of $17.5 million and $13.0
million for the three month period ended June 30, 2021 and 2020,
respectively, and $31.1 million and $25.2 million for the six month
period ended June 30, 2021 and 2020, respectively. |
(2) |
Includes expenses of Navios Logistics of $3.5 million and $3.2
million for the three month period ended June 30, 2021 and 2020,
respectively, and $6.8 million and $6.5 million for the six month
period ended June 30, 2021 and 2020, respectively. |
|
|
NAVIOS MARITIME HOLDINGS
INC.Other Financial Data
|
June
30,
2021 |
|
December 31, 2020 |
ASSETS |
(unaudited) |
|
(unaudited) |
Cash and cash equivalents, including restricted cash |
$ |
73,169 |
|
$ |
111,184 |
Vessels, port terminals and
other fixed assets, net |
|
995,689 |
|
|
1,139,539 |
Goodwill and other
intangibles |
|
256,119 |
|
|
258,899 |
Operating lease assets |
|
193,967 |
|
|
227,962 |
Other current and non-current
assets |
|
310,149 |
|
|
233,741 |
Total
assets |
$ |
1,829,093 |
|
$ |
1,971,325 |
LIABILITIES AND EQUITY |
|
|
|
|
|
Long-term debt, including
current portion |
$ |
223,058 |
|
$ |
320,863 |
Senior and ship mortgage
notes, net |
|
1,253,395 |
|
|
1,263,566 |
Operating lease liabilities,
current portion |
|
60,283 |
|
|
81,415 |
Operating lease liabilities,
net of current portion |
|
167,513 |
|
|
193,351 |
Other current and non-current
liabilities |
|
132,962 |
|
|
146,413 |
Total stockholders’
deficit |
|
(8,118) |
|
|
(34,283) |
Total liabilities and
stockholders’ equity |
$ |
1,829,093 |
|
$ |
1,971,325 |
|
|
|
|
|
|
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
and Adjusted Basic Earnings/(Loss) per share are “non-U.S. GAAP
financial measures” and should not be used in isolation or
considered substitutes for net income/(loss), cash flow from
operating activities and other operations or cash flow statement
data prepared in accordance with generally accepted accounting
principles in the United States.
EBITDA represents net income/(loss) attributable
to Navios Holdings' common stockholders before interest and finance
costs, before depreciation and amortization, before income taxes
and before stock-based compensation. Adjusted EBITDA represents
EBITDA, excluding certain additional items as described under
“Earnings Highlights”. We use EBITDA and Adjusted EBITDA as
liquidity measures and reconcile EBITDA and Adjusted EBITDA to net
cash provided by operating activities, the most comparable U.S.
GAAP liquidity measure. EBITDA is calculated as follows: net cash
provided by operating activities adding back, when applicable and
as the case may be, the effect of (i) net increase/(decrease) in
operating assets; (ii) net (increase)/decrease in operating
liabilities; (iii) net interest cost; (iv) deferred financing costs
and gains/(losses) on bond and debt extinguishment, net; (v)
allowance for credit losses; (vi) earnings/(losses) in affiliate
companies, net of dividends received; (vii) payments for drydock,
special survey costs and other capitalized items; (viii)
noncontrolling interest; (ix) gain/ (loss) on sale of assets; (x)
unrealized (loss)/gain on derivatives; (xi) loss on sale and
reclassification to earnings of available-for-sale securities; and
(xii) impairment losses. Navios Holdings believes that EBITDA and
Adjusted EBITDA are a basis upon which liquidity can be assessed
and represents useful information to investors regarding Navios
Holdings’ ability to service and/or incur indebtedness, pay capital
expenditures and meet working capital requirements. Navios Holdings
also believes that EBITDA and Adjusted EBITDA are used (i) by
prospective and current lessors as well as potential lenders to
evaluate potential transactions; (ii) to evaluate and price
potential acquisition candidates; and (iii) by securities analysts,
investors and other interested parties in the evaluation of
companies in our industry.
While EBITDA and Adjusted EBITDA are frequently
used as measures of operating results and the ability to meet debt
service requirements, the definitions of EBITDA and Adjusted EBITDA
used here may not be comparable to those used by other companies
due to differences in methods of calculation.
EBITDA and Adjusted EBITDA have limitations as
an analytical tool, and therefore, should not be considered in
isolation or as a substitute for the analysis of Navios Holdings’
results as reported under U.S. GAAP. Some of these limitations are:
(i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash
requirements for, working capital needs; (ii) EBITDA and Adjusted
EBITDA do not reflect the amounts necessary to service interest or
principal payments on our debt and other financing arrangements;
and (iii) although depreciation and amortization are non-cash
charges, the assets being depreciated and amortized may have to be
replaced in the future. EBITDA and Adjusted EBITDA do not reflect
any cash requirements for such capital expenditures. Because of
these limitations, among others, EBITDA and Adjusted EBITDA should
not be considered as an indicator of Navios Holdings’
performance.
Navios Logistics EBITDA is used to measure its
operating performance.
We present Adjusted Net Income/(Loss)
attributable to Navios Holdings’ common stockholders because we
believe it assists investors and analysts in comparing our
operating performance across reporting periods on a consistent
basis by excluding items that we do not believe are indicative of
our core operating performance. Our presentation of Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
adjusts net income/(loss) attributable to Navios Holdings’ common
stockholders for the items described above under “Earnings
Highlights”. The definition of Adjusted Net Income/(Loss) used here
may not be comparable to that used by other companies due to
differences in methods of calculation.
Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’
common stockholders per share is defined as Adjusted Net
Income/(Loss) attributable to Navios Holdings’ common stockholders
divided by the weighted average number of shares for each of the
periods presented.
The following tables provide a reconciliation of
EBITDA and Adjusted EBITDA of Navios Holdings (including Navios
Logistics) and EBITDA of Navios Logistics on a stand-alone
basis:
Navios Holdings
Reconciliation of EBITDA and Adjusted EBITDA to Cash from
Operations
|
June 30, |
|
June 30, |
Three Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net cash provided by operating activities |
$ |
26,037 |
|
$ |
7,012 |
Net increase/ (decrease) in
operating assets |
|
11,276 |
|
|
(5,931) |
Net increase in operating
liabilities |
|
(9,831) |
|
|
(17,324) |
Interest expense and finance
cost, net |
|
36,170 |
|
|
31,418 |
Deferred financing costs |
|
(2,164) |
|
|
(1,905) |
Allowance for credit
losses |
|
(3) |
|
|
(167) |
Equity in affiliate companies,
net of dividends received |
|
12,827 |
|
|
8,829 |
Payments for drydock and
special survey costs |
|
9,366 |
|
|
8,314 |
Noncontrolling interest |
|
391 |
|
|
(4,334) |
Gain on bond
extinguishment |
|
1,873 |
|
|
— |
Impairment loss/ loss on sale
of vessels, net |
|
(5,406) |
|
|
(8,967) |
EBITDA |
$ |
80,536 |
|
$ |
16,945 |
Impairment loss/ loss on sale
of vessels, net |
|
5,406 |
|
|
8,967 |
Other items from affiliate
companies |
|
— |
|
|
1,272 |
Adjusted
EBITDA |
$ |
85,942 |
|
$ |
27,184 |
Three Month
Period Ended |
June 30, 2021 |
|
June 30,2020 |
(in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net cash provided by operating activities |
$ |
26,037 |
|
$ |
7,012 |
Net cash provided by investing
activities |
$ |
70,484 |
|
$ |
256 |
Net cash used in financing
activities |
$ |
(83,435) |
|
$ |
(7,383) |
|
|
|
|
|
|
Adjusted EBITDA breakdown
|
June
30, |
|
June
30, |
Three Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Core shipping
operations |
$ |
51,260 |
|
$ |
(6,161) |
Navios Logistics (including noncontrolling interest) |
|
21,828 |
|
|
22,628 |
Equity in net earnings of affiliate companies |
|
12,854 |
|
|
10,717 |
Adjusted EBITDA |
$ |
85,942 |
|
$ |
27,184 |
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
June 30, |
|
June 30, |
Three Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net
income |
$ |
(1,082) |
|
$ |
11,981 |
Depreciation and amortization |
|
8,071 |
|
|
7,267 |
Amortization of deferred drydock and special survey costs |
|
880 |
|
|
995 |
Interest expense and finance cost, net |
|
12,990 |
|
|
6,798 |
Income tax benefit |
|
578 |
|
|
(79) |
EBITDA |
$ |
21,437 |
|
$ |
26,962 |
|
|
|
|
|
|
Navios Holdings Reconciliation of
EBITDA and Adjusted EBITDA to Cash from Operations
|
June 30, |
|
June 30, |
Six Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net cash (used in)/ provided by operating activities |
$ |
(1,365) |
|
$ |
5,530 |
Net increase/ (decrease) in
operating assets |
|
20,602 |
|
|
(9,933) |
Net decrease/ (increase) in
operating liabilities |
|
17,016 |
|
|
(32,392) |
Interest expense and finance
cost, net |
|
72,370 |
|
|
63,061 |
Deferred financing costs |
|
(4,611) |
|
|
(3,733) |
Allowance for credit
losses |
|
(249) |
|
|
(575) |
Equity in affiliate companies,
net of dividends received |
|
40,504 |
|
|
8,680 |
Payments for drydock and
special survey costs |
|
15,609 |
|
|
14,129 |
Noncontrolling interest |
|
(760) |
|
|
(6,883) |
Gain on bond
extinguishment |
|
1,873 |
|
|
11,204 |
Impairment loss/ loss on sale
of vessels, net |
|
(25,861) |
|
|
(20,215) |
Impairment loss on investment
in affiliate |
|
— |
|
|
(6,650) |
Impairment of loan receivable
from affiliate company |
|
— |
|
|
(6,050) |
EBITDA |
$ |
135,128 |
|
$ |
16,173 |
Impairment loss/ loss on sale
of vessels, net |
|
25,861 |
|
|
20,215 |
Equity in net earnings of
affiliate companies due to Navios Partners' Merger |
|
(25,852) |
|
|
— |
Other items from affiliate
companies |
|
— |
|
|
6,844 |
Impairment of loan receivable
from affiliate company |
|
— |
|
|
6,050 |
Impairment loss on investment
in affiliate company |
|
— |
|
|
6,650 |
Adjusted
EBITDA |
$ |
135,137 |
|
$ |
55,932 |
Six Month
Period Ended |
June
30, 2021 |
|
June 30,2020 |
(in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net cash (used
in)/ provided by operating activities |
$ |
(1,365) |
|
$ |
5,530 |
Net cash provided by/(used in) investing activities |
$ |
91,074 |
|
$ |
(56,545) |
Net cash (used in)/provided by financing activities |
$ |
(127,724) |
|
$ |
27,360 |
|
|
|
|
|
|
Adjusted EBITDA breakdown
|
June
30, |
|
June
30, |
Six Month
Period Ended |
2021 |
|
2020 |
(in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Core shipping
operations |
$ |
76,424 |
|
$ |
(3,198) |
Navios Logistics (including noncontrolling interest) |
|
43,971 |
|
|
42,328 |
Equity in net earnings of affiliate companies |
|
14,742 |
|
|
16,802 |
Adjusted EBITDA |
$ |
135,137 |
|
$ |
55,932 |
|
|
|
|
|
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
June 30, |
|
June 30, |
Six Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net
income |
$ |
2,099 |
|
$ |
19,027 |
Depreciation and amortization |
|
15,540 |
|
|
14,545 |
Amortization of deferred drydock and special survey costs |
|
1,788 |
|
|
2,034 |
Interest expense and finance cost, net |
|
25,580 |
|
|
13,768 |
Income tax benefit |
|
(276) |
|
|
(163) |
EBITDA |
$ |
44,731 |
|
$ |
49,211 |
|
|
|
|
|
|
EXHIBIT IIOwned
Vessels
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metric tons) |
Navios Ulysses |
|
Ultra Handymax |
|
2007 |
|
55,728 |
Navios Celestial |
|
Ultra Handymax |
|
2009 |
|
58,063 |
Navios Vega |
|
Ultra Handymax |
|
2009 |
|
58,792 |
Navios Taurus |
|
Panamax |
|
2005 |
|
76,596 |
Navios Asteriks |
|
Panamax |
|
2005 |
|
76,801 |
N Amalthia |
|
Panamax |
|
2006 |
|
75,318 |
Navios Galileo |
|
Panamax |
|
2006 |
|
76,596 |
N Bonanza |
|
Panamax |
|
2006 |
|
76,596 |
Rainbow N |
|
Panamax |
|
2011 |
|
79,642 |
Jupiter N |
|
Panamax |
|
2011 |
|
93,062 |
Navios Stellar |
|
Capesize |
|
2009 |
|
169,001 |
Navios 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 Canary |
|
Capesize |
|
2015 |
|
180,528 |
Navios Corali |
|
Capesize |
|
2015 |
|
181,249 |
|
|
|
|
|
|
|
Long-term
Bareboat-in Fleet in Operation
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metric tons) |
|
Purchase Option(1) |
Navios Herakles I |
|
Panamax |
|
2019 |
|
82,036 |
|
Yes |
Navios Uranus |
|
Panamax |
|
2019 |
|
81,516 |
|
Yes |
Navios Felicity I |
|
Panamax |
|
2020 |
|
81,946 |
|
Yes |
Navios Galaxy II |
|
Panamax |
|
2020 |
|
81,789 |
|
Yes |
Navios Magellan II |
|
Panamax |
|
2020 |
|
82,037 |
|
Yes |
(1 |
) |
Generally, Navios Holdings may
exercise its purchase option after three to five years of
service. |
|
|
|
Long-term Charter-in Fleet in
Operation
Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight (in metric tons) |
|
Purchase Option(1) |
Navios Lyra |
|
Handysize |
|
2012 |
|
34,718 |
|
Yes (2) |
Navios Venus |
|
Ultra Handymax |
|
2015 |
|
61,339 |
|
Yes |
Navios Marco Polo |
|
Panamax |
|
2011 |
|
80,647 |
|
Yes |
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 |
Cassiopeia Ocean |
|
Panamax |
|
2018 |
|
82,069 |
|
No |
Navios Gemini |
|
Panamax |
|
2018 |
|
81,704 |
|
No (3) |
Navios Horizon I |
|
Panamax |
|
2019 |
|
81,692 |
|
No (3) |
Navios Felix |
|
Capesize |
|
2016 |
|
181,221 |
|
Yes |
Navios Obeliks |
|
Capesize |
|
2012 |
|
181,415 |
|
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. |
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