Navios Maritime Holdings Inc. (“Navios Holdings” or the “Company”)
(NYSE: NM), a global seaborne shipping and logistics company, today
reported financial results for the fourth quarter and year ended
December 31, 2021.
Angeliki Frangou, Chairwoman and Chief Executive Officer,
stated, “I am pleased with our excellent results for the fourth
quarter and full year of 2021. In the fourth quarter of 2021,
Navios Holdings reported revenue of $156.8 million, Adjusted EBITDA
of $101.9 million and Adjusted Net Income of $45.8 million. For the
full year, Navios Holdings recorded revenue of $585.8 million,
Adjusted EBITDA of $353.2 million, and Adjusted Net Income of
$130.7 million.”
Angeliki Frangou, continued, “Through the course of 2021,
we worked creatively to assemble a debt package that allowed
us to extinguish $614.3 million of Ship Mortgage Notes, and to also
reduce the principal amount outstanding of the
Senior Notes to $155 million. Today, we have a much improved
balance sheet, and runway to further deleverage in a favorable dry
bulk market.”
HIGHLIGHTS – RECENT DEVELOPMENTS
$614.3 million Repayment of Ship Mortgage
Notes
In January 2022, the Company repaid its 7.375% First Priority
Ship Mortgage Notes (“Ship Mortgage Notes”) using (i) $206.7
million under two credit facilities with commercial banks; (ii)
$77.0 million under sale and leaseback agreements; (iii) $100.0
million of additional financing from N Shipmanagement Acquisition
Corp. and its subsidiaries (“NSM”), an entity affiliated with
Navios Holdings’ Chairwoman and Chief Executive Officer; and (iv)
cash from balance sheet. In addition, $158.9 million of Ship
Mortgage Notes held by the Company that had previously been pledged
as collateral to NSM were cancelled.
As a result of these transactions, $614.3 million in debt
maturing in 2022 was retired and the maturity of the remaining debt
was extended and staggered.
$150.0 million Principal Reduction of Senior
Notes
During the second half of 2021, Navios Holdings redeemed $150.0
million of its 11.25% Senior Secured Notes (“Senior Notes”).
Following this redemption, $155.0 million of Senior Notes remains
outstanding and matures in August 2022.
Fleet Statistics
Navios Holdings controls a fleet of 36 vessels
totaling 3.9 million dwt, of which 25 are owned (including five
bareboat-in vessels) and 11 are chartered-in under long-term
charters (collectively, the "Core Fleet"). The fleet consists of 12
Capesize, 19 Panamax, four Ultra-Handymax and one Handysize
vessels, with an average age of 9.1 years.
As of February 18, 2022, Navios Holdings has
chartered-out 77% of available days for 2022. 33% of available days
are chartered-out on fixed rate and 44% are chartered-out on
index.
The average contracted daily charter-in rate for
the long-term charter-in vessels for 2022 is $15,633 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
Fourth Quarter 2021 and 2020 Results (in thousands of
U.S. dollars, except per share data and unless otherwise
stated):
The fourth quarter 2021 and 2020 information
presented below was derived from the unaudited condensed
consolidated financial statements for the respective periods.
|
|
Three Month Period EndedDecember 31,
2021 |
|
|
|
Three Month Period EndedDecember 31,
2020 |
|
|
|
|
(unaudited) |
|
|
(unaudited) |
Revenue |
$ |
156,794 |
|
|
$ |
102,353 |
|
|
Net Income/(Loss) attributable
to Navios Holdings’ common stockholders |
$ |
31,779 |
|
|
$ |
(94,355 |
) |
|
Adjusted Net Income/(Loss)
attributable to Navios Holdings’ common stockholders |
$ |
45,798 |
(1) |
|
$ |
(20,518 |
) |
(2) |
Net cash provided by/(used in)
operating activities |
$ |
77,952 |
|
|
$ |
(10,094 |
) |
|
EBITDA |
$ |
87,893 |
|
|
$ |
(36,274 |
) |
|
Adjusted EBITDA |
$ |
101,912 |
(1) |
|
$ |
37,563 |
|
(2) |
Basic Earnings/ (Loss)
attributable to Navios Holdings’ common stockholders per share |
$ |
1.36 |
|
|
$ |
(7.40 |
) |
|
Adjusted Basic Earnings/(Loss)
attributable to Navios Holdings’ common stockholders per share |
$ |
1.99 |
(1) |
|
$ |
(1.69 |
) |
(2) |
(1) |
|
Adjusted Net Income, Adjusted EBITDA and Adjusted Basic Earnings
per share attributable to Navios Holdings’ common stockholders for
the three month period ended December 31, 2021 exclude $14.0
million portion of loss in impairment losses incurred by Navios
Logistics. |
(2) |
|
Adjusted Net Loss, Adjusted EBITDA and Adjusted Basic Loss
attributable to Navios Holdings’ common stockholders per share for
the three month period ended December 31, 2020 exclude (i) $60.5
million in impairment losses relating to Navios Holdings drybulk
vessels; and (ii) $13.4 million in other-than- temporary impairment
(“OTTI”) loss related to our investment in an affiliate
company. |
|
|
|
Revenue from the Dry Bulk Vessel Operations for
the three month period ended December 2021 increased by $46.8
million, or 76.9%, to $107.6 million, as compared to $60.8 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 December 31, 2021.
The TCE per day increased by 135% to $31,156 per day in the three
month period ended December 31, 2021, as compared to $13,248 per
day in the same period of 2020.
Revenue from the Logistics Business was $49.2
million for the three month period ended December 31, 2021, as
compared to $41.5 million for the same period in 2020. The increase
was mainly attributable to (i) a $6.3 million increase in revenue
from the barge business, mainly due to a $7.0 million increase in
CoA/voyage revenues related to higher liquid and dry cargo moved,
partially mitigated by a $0.7 million decrease in time charter
revenues mainly due to lower time charter rates; (ii) a $3.5
million increase in sales of products due to the increase in the
Paraguayan liquid port’s volumes of products sold; and (iii) a $0.1
million increase in revenue from the port terminal business ,mainly
due to higher storage revenues in the iron ore port terminal. The
overall increase was partially mitigated by a $2.2 million decrease
in revenue from the cabotage business, mainly due to fewer
operating days.
Net Income attributable to Navios Holdings’
common stockholders was $31.8 million for the three month period
ended December 31, 2021, as compared to a $94.4 million Net Loss
attributable to Navios Holdings’ common stockholders for the same
period in 2020. Net Income/(Loss) attributable to Navios Holdings’
common stockholders in the three month period ended December 31,
2021 and 2020 were 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
December 31, 2021 was $45.8 million as compared to a $20.5 million
Adjusted Net Loss attributable to Navios Holdings’ common
stockholders for the three month period ended December 31, 2020.
This increase in Adjusted Net Income was mainly due to (i) a $64.3
million increase in Adjusted EBITDA as discussed in the paragraph
below; (ii) a $2.7 million decrease in depreciation and
amortization; (iii) a $0.3 million decrease in income tax expense;
and (iv) a $0.2 million decrease in stock-based compensation
expense. This overall increase of approximately $67.6 million was
partially mitigated by (i) a $0.9 million increase in interest
expense and finance cost, net; and (ii) a $0.3 million increase in
amortization of deferred drydock and special survey costs.
Net Loss of Navios Logistics, on a standalone
basis, was $42.0 million for the three month period ended December
31, 2021 as compared to $9.7 million for the same period in 2020.
Excluding $22.0 million of impairment loss incurred for the three
month period ended December 31, 2021, Adjusted Net Loss of Navios
Logistics, on a standalone basis, was $20.1 million for the three
month period ended December 31, 2021.
Adjusted EBITDA of Navios Holdings for the three
month period ended December 31, 2021 increased by $64.3 million to
$101.9 million, as compared to $37.6 million for the same period in
2020. The increase in Adjusted EBITDA was primarily due to (i) a
$54.4 million increase in revenue; (ii) a $10.0 million increase in
equity in net earnings from affiliate companies; (iii) a $3.8
million increase in net loss attributable to noncontrolling
interest; (iv) a $1.0 million decrease in general and
administrative expenses (excluding stock-based compensation
expenses); and (v) a $0.1 million decrease in time charter, voyage
and logistics business expenses. This overall increase of $69.3
million was partially mitigated by (i) a $2.5 million increase in
other expense, net; (ii) a $2.4 million increase in direct vessel
expenses (excluding the amortization of deferred drydock and
special survey costs); and (iii) a $0.1 million loss incurred on
bond extinguishment.
Adjusted EBITDA of Navios Logistics, on a
standalone basis, was $10.2 million for the three month period
ended December 31, 2021 (adjusted to exclude $22.0 million in
impairment losses incurred) as compared to $13.1 million for the
same period in 2020.
Year Ended December 2021 and 2020
Results (in thousands of U.S. dollars, except per share data and
unless otherwise stated):
The information for the year ended December 31, 2021 and 2020
presented below was derived from the unaudited condensed
consolidated financial statements for the respective periods.
|
|
Year EndedDecember 31, 2021 |
|
|
|
|
Year EndedDecember 31, 2020 |
|
|
|
|
(unaudited) |
|
|
(unaudited) |
Revenue |
$ |
585,818 |
|
|
$ |
416,718 |
|
|
Net Income/(Loss) attributable
to Navios Holdings’ common stockholders |
$ |
116,686 |
|
|
$ |
(192,961 |
) |
|
Adjusted Net Income/ (Loss)
attributable to Navios Holdings’ common stockholders |
$ |
130,714 |
(1) |
|
$ |
(67,525 |
) |
(2) |
Net cash provided by operating
activities |
$ |
109,620 |
|
|
$ |
25,211 |
|
|
EBITDA |
$ |
339,164 |
|
|
$ |
27,931 |
|
|
Adjusted EBITDA |
$ |
353,192 |
(1) |
|
$ |
153,367 |
|
(2) |
Basic Earnings/ (Loss)
attributable to Navios Holdings’ common stockholders per share |
$ |
6.90 |
|
|
$ |
(15.35 |
) |
|
Adjusted Basic Earnings/
(Loss) attributable to Navios Holdings’ common stockholders per
share |
$ |
7.77 |
(1) |
|
$ |
(5.63 |
) |
(3) |
(1) |
|
Adjusted Net Income, Adjusted EBITDA and Adjusted Basic Earnings
per share attributable to Navios Holdings’ common stockholders for
year ended December 31, 2021 exclude (i) $25.9 million in
impairment losses relating to seven drybulk vessels of Navios
Holdings; (ii) $14.0 million portion of loss in impairment losses
incurred by Navios Logistics relating to two tanker vessels; and
(iii) $25.9 million in equity income in affiliate companies due to
the merger of Navios Containers with Navios Partners (“Navios
Partners Merger I”) effected on March 31, 2021. |
(2) |
|
Adjusted Net Loss and Adjusted EBITDA attributable to Navios
Holdings’ common stockholders for the year ended December 31, 2020
exclude (i) $88.4 million in impairment losses relating to drybulk
vessels; (ii) $13.4 million in OTTI loss related to our investment
in an affiliate company; (iii) $12.7 million in OTTI loss and
impairment losses of loan receivable in relation to Navios Europe
II; (iv) $5.6 million in non-cash impairment losses incurred by our
affiliate companies relating to their investment in Navios Europe
II; (v) $4.2 million in write-off of deferred finance cost for bond
extinguishment incurred by Navios Logistics; and (vi) $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 year ended December 31, 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 year ended December 31, 2021 increased by $161.5 million, or
80.5%, to $362.3 million, as compared to $200.8 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 2021. The TCE per day increased by 124% to $23,638
per day in the year ended December 31, 2021, as compared to $10,543
per day in the same period of 2020.
Revenue from the Logistics Business was $223.5
million for the year ended December 31, 2021, as compared to $215.9
million for the same period in 2020. The increase was mainly
attributable to (i) a $16.2 million increase in revenue from the
barge business mainly due to a $23.8 million increase in CoA/voyage
revenues related to higher CoA/voyage revenues of convoys
previously under time charter contracts, partially mitigated by a
$7.6 million decrease in time charter revenues mainly due to the
expiration of certain legacy time charter contracts; and (ii) a
$5.4 million increase in revenue from the port terminal business
mainly due to higher volumes transshipped in the grain port
terminal and higher storage revenues in the iron ore port terminal
and liquid port terminal. The overall increase was partially
mitigated by (i) a $10.6 million decrease in revenue from the
cabotage business mainly due to fewer operating days; and (ii) a
$3.5 million decrease in sales of products due to the decrease in
the Paraguayan liquid port’s volume of products sold.
Net Income attributable to Navios Holdings’
common stockholders was $116.7 million for the year ended December
31, 2021, as compared to a $193.0 million Net Loss attributable to
Navios Holdings’ common stockholders for the same period in 2020.
Net Income/(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 year ended December 31, 2021
was approximately $130.7 million, as compared to $67.5 million in
Adjusted Net Loss attributable to Navios Holdings’ common
stockholders for the same period in 2020. This increase in Adjusted
Net Income was mainly due to (i) a $199.8 million increase in
Adjusted EBITDA as discussed in the paragraph below; (ii) a $9.8
million decrease in depreciation and amortization; and (iii) a $0.7
million decrease in stock-based compensation expense. This overall
increase of $210.3 million was partially mitigated by (i) a $8.5
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 Navios Logistics’ 10.75% Notes due
2025; (ii) a $2.8 million increase in income tax expense mainly due
to the recalculation of the deferred tax liability resulting from
an increase in income tax rate; and (iii) a $0.8 million increase
in amortization of deferred drydock and special survey costs.
Net Loss of Navios Logistics, on a standalone
basis, was $44.3 million for the year ended December 31, 2021 as
compared to $12.0 million of Net Income of Navios Logistics for the
same period in 2020. Excluding $22.0 million in impairment loss
incurred during the year ended December 31, 2021, Adjusted Net Loss
of Navios Logistics, on a standalone basis, was $22.4 million for
the year ended December 31, 2021. Excluding $4.2 million in
write-off of deferred finance cost for bond extinguishment incurred
for the year ended December 31, 2020, Adjusted Net Income of Navios
Logistics, on a standalone basis, was $16.2 million for the year
ended December 31, 2020.
Adjusted EBITDA of Navios Holdings for the year
ended December 31, 2021 increased by $199.8 million to $353.2
million, as compared to $153.4 million for the same period in 2020.
The increase in Adjusted EBITDA was primarily due to (i) a $169.1
million increase in revenue; (ii) a $21.2 million increase in net
loss attributable to noncontrolling interest; (iii) a $17.9 million
increase in equity in net earnings from affiliate companies; (iv) a
$12.1 million decrease in time charter, voyage and logistics
business expenses; and (v) a $1.7 million decrease in general and
administrative expenses (excluding stock-based compensation
expenses). This overall increase of $222.0 million was partially
mitigated by (i) a $10.3 million decrease in gain on bond and debt
extinguishment; (ii) a $6.8 million increase in direct vessel
expenses (excluding the amortization of deferred drydock and
special survey costs); and (iii) a $5.1 million increase in other
expense, net.
Excluding $22.0 million in impairment loss
incurred during the year ended December 31, 2021, Adjusted EBITDA
of Navios Logistics, on a standalone basis, was $78.0 million for
the year ended December 31, 2021. Excluding $4.2 million in
write-off of deferred financing cost for bond and debt
extinguishment incurred for the year ended December 31, 2020,
Adjusted EBITDA of Navios Logistics, on a standalone basis, was
$90.6 million for the year ended December 31, 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 month period and year ended
December 31, 2021 and 2020, respectively.
|
|
Three Month |
|
Three Month |
|
Year |
|
Year |
|
|
Period Ended |
|
Period Ended |
|
Ended |
|
Ended |
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
Available Days (1) |
|
|
3,315 |
|
|
|
4,444 |
|
|
|
14,810 |
|
|
|
18,266 |
|
Operating Days (2) |
|
|
3,275 |
|
|
|
4,389 |
|
|
|
14,687 |
|
|
|
18,060 |
|
Fleet Utilization (3) |
|
|
98.8 |
% |
|
|
98.8 |
% |
|
|
99.2 |
% |
|
|
98.9 |
% |
Equivalent Vessels (4) |
|
|
36 |
|
|
|
48 |
|
|
|
41 |
|
|
|
50 |
|
TCE (5) |
|
$ |
31,156 |
|
|
$ |
13,248 |
|
|
$ |
23,638 |
|
|
$ |
10,543 |
|
(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, February 24, 2022, at 8:30 am ET, at
which time Navios Holdings' senior management will provide
highlights and commentary on earnings results for the fourth
quarter and year ended December 31, 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, February 24, 2022 at 8:30 am ET
Call Title: Navios Holdings Q4 2021 Financial
Results Conference CallUS Dial In: +1.866.518.6930International
Dial In: +1.203.518.9822Conference ID: NMQ421
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:
+1.800.283.4216International Replay Dial In: +1.402.220.9033
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 an
international owner and operator of dry cargo and tanker vessels.
For more information, please visit our website at
www.navios-mlp.com.
Forward
Looking Statements
- Safe
Harbor
This press release contains and our earnings
call 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 with respect to the expected redemption of the
Senior Notes, expected cash flow generation, expected effects of
the Navios Partners/Navios Acquisition merger, future contracted
revenues, potential capital gains, our ability to take advantage of
dislocation in the market and any market recovery, Navios Holdings’
growth strategy and measures to implement such strategy, including
expected vessel acquisitions and entering into further time
charters, and Navios Holdings’ ability to meet its ESG goals. 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 Month Period EndedDecember 31,
2021 |
|
|
Three Month Period EndedDecember 31,
2020 |
|
Year EndedDecember 31,
2021 |
|
Year EndedDecember 31,
2020 |
|
|
(unaudited) |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
Revenue |
|
$ |
156,794 |
|
|
|
$ |
102,353 |
|
|
$ |
585,818 |
|
|
$ |
416,718 |
|
Time charter, voyage and
logistics business expenses |
|
|
(37,732 |
) |
|
|
|
(37,859 |
) |
|
|
(154,451 |
) |
|
|
(166,589 |
) |
Direct vessel expenses(1) |
|
|
(28,632 |
) |
|
|
|
(25,924 |
) |
|
|
(112,350 |
) |
|
|
(104,755 |
) |
General and administrative
expenses(2) |
|
|
(9,105 |
) |
|
|
|
(10,258 |
) |
|
|
(31,327 |
) |
|
|
(33,702 |
) |
Depreciation and
amortization |
|
|
(14,442 |
) |
|
|
|
(17,174 |
) |
|
|
(61,235 |
) |
|
|
(71,015 |
) |
Interest expense and finance
cost, net |
|
|
(37,294 |
) |
|
|
|
(36,382 |
) |
|
|
(144,753 |
) |
|
|
(136,302 |
) |
Impairment loss/ loss on sale
of vessels, net |
|
|
(21,966 |
) |
|
|
|
(60,469 |
) |
|
|
(47,827 |
) |
|
|
(88,367 |
) |
(Loss)/gain on bond and debt
extinguishment |
|
|
(100 |
) |
|
|
|
— |
|
|
|
951 |
|
|
|
7,047 |
|
Other expense, net |
|
|
(3,956 |
) |
|
|
|
(1,473 |
) |
|
|
(7,383 |
) |
|
|
(2,245 |
) |
Impairment of loan receivable
from affiliate company |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
(6,050 |
) |
Income/ (Loss) before
equity in net earnings of affiliate companies |
|
$ |
3,567 |
|
|
|
$ |
(87,186 |
) |
|
$ |
27,443 |
|
|
$ |
(185,260 |
) |
Equity in net
earnings/(losses) of affiliate companies |
|
|
14,352 |
|
|
|
|
(8,991 |
) |
|
|
69,275 |
|
|
|
(1,293 |
) |
Income/ (Loss) before
taxes |
|
$ |
17,919 |
|
|
|
$ |
(96,177 |
) |
|
$ |
96,718 |
|
|
$ |
(186,553 |
) |
Income tax expense |
|
|
(1,347 |
) |
|
|
|
(1,672 |
) |
|
|
(4,817 |
) |
|
|
(2,052 |
) |
Net income/
(loss) |
|
$ |
16,572 |
|
|
|
$ |
(97,849 |
) |
|
$ |
91,901 |
|
|
$ |
(188,605 |
) |
Less: Net loss/ (income)
attributable to the noncontrolling interest |
|
|
15,207 |
|
|
|
|
3,494 |
|
|
|
24,785 |
|
|
|
(4,356 |
) |
Net income/ (loss)
attributable to Navios Holdings common stockholders |
|
$ |
31,779 |
|
|
|
$ |
(94,355 |
) |
|
$ |
116,686 |
|
|
$ |
(192,961 |
) |
Income/ (Loss)
attributable to Navios Holdings common stockholders, basic and
diluted |
|
$ |
30,497 |
|
|
|
$ |
(95,637 |
) |
|
$ |
111,559 |
|
|
$ |
(197,939 |
) |
Basic earnings/ (loss)
per share attributable to Navios Holdings common
stockholders |
|
$ |
1.36 |
|
|
|
$ |
(7.40 |
) |
|
$ |
6.90 |
|
|
$ |
(15.35 |
) |
Weighted average
number of shares, basic |
|
|
22,409,121 |
|
|
|
|
12,919,609 |
|
|
|
16,168,329 |
|
|
|
12,896,568 |
|
Basic diluted
earnings/ (loss) per share attributable to Navios Holdings common
stockholders |
|
$ |
1.34 |
|
|
|
$ |
(7.40 |
) |
|
$ |
6.74 |
|
|
$ |
(15.35 |
) |
Weighted average
number of shares, diluted |
|
|
22,787,486 |
|
|
|
|
12,919,609 |
|
|
|
16,553,048 |
|
|
|
12,896,568 |
|
(1) |
|
Includes expenses of Navios Logistics of $17.0 million and $13.3
million for the three month period ended December 31, 2021 and
2020, respectively, and $64.6 million and $52.7 million for the
year ended December 31, 2021 and 2020, respectively. |
(2) |
|
Includes expenses of Navios Logistics of $3.7 million and $3.2
million for the three month period ended December 31, 2021 and
2020, respectively, and $14.1 million and $12.9 million for the
year ended December 31, 2021 and 2020, respectively. |
|
NAVIOS MARITIME HOLDINGS INC.Other
Financial Data |
|
|
|
December 31,
2021 |
|
|
December 31, 2020 |
ASSETS |
|
|
(unaudited) |
|
|
|
(unaudited) |
|
Cash and cash equivalents,
including restricted cash |
|
$ |
137,851 |
|
|
$ |
111,184 |
|
Vessels, port terminals and
other fixed assets, net |
|
|
950,002 |
|
|
|
1,139,539 |
|
Goodwill and other
intangibles |
|
|
253,317 |
|
|
|
258,899 |
|
Operating lease assets |
|
|
173,426 |
|
|
|
227,962 |
|
Other current and non-current
assets |
|
|
294,182 |
|
|
|
233,741 |
|
Total
assets |
|
$ |
1,808,778 |
|
|
$ |
1,971,325 |
|
LIABILITIES AND
EQUITY |
|
|
|
|
|
Long-term debt, including current portion |
$ |
284,553 |
|
$ |
320,863 |
|
Senior and ship mortgage
notes, net |
|
1,101,931 |
|
|
1,263,566 |
|
Operating lease liabilities,
current portion |
|
54,747 |
|
|
81,415 |
|
Operating lease liabilities,
net of current portion |
|
144,239 |
|
|
193,351 |
|
Other current and non-current
liabilities |
|
156,664 |
|
|
146,413 |
|
Total stockholders’
equity/(deficit) |
|
66,644 |
|
|
(34,283 |
) |
Total liabilities and
stockholders’ equity |
$ |
1,808,778 |
|
$ |
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
|
December 31, |
|
December 31, |
Three Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net cash provided by/(used in) operating activities |
$ |
77,952 |
|
|
$ |
(10,094 |
) |
Net (decrease)/increase in
operating assets |
|
(9,888 |
) |
|
|
13,785 |
|
Net increase in operating
liabilities |
|
(26,355 |
) |
|
|
(10,064 |
) |
Interest expense and finance
cost, net |
|
37,294 |
|
|
|
36,382 |
|
Deferred financing costs |
|
(2,011 |
) |
|
|
(2,156 |
) |
Allowance for credit
losses |
|
(51 |
) |
|
|
— |
|
Equity in affiliate companies,
net of dividends received |
|
14,106 |
|
|
|
4,355 |
|
Payments for drydock and
special survey costs |
|
3,705 |
|
|
|
1,861 |
|
Noncontrolling interest |
|
15,207 |
|
|
|
3,494 |
|
Loss on bond
extinguishment |
|
(100 |
) |
|
|
— |
|
Impairment loss/ loss on sale
of vessels, net |
|
(21,966 |
) |
|
|
(60,469 |
) |
Impairment loss on investment
in affiliate company |
|
— |
|
|
|
(13,368 |
) |
EBITDA |
$ |
87,893 |
|
|
$ |
(36,274 |
) |
Impairment loss/ loss on sale
of vessels, net |
|
— |
|
|
|
60,469 |
|
Portion of loss on Navios
Logistics impairment loss |
|
14,019 |
|
|
|
— |
|
Impairment loss on investment
in affiliate company |
|
— |
|
|
|
13,368 |
|
Adjusted
EBITDA |
$ |
101,912 |
|
|
$ |
37,563 |
|
Three Month
Period Ended |
December 31,
2021 |
|
December 31,2020 |
(in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net cash provided by/(used in) operating activities |
$ |
77,952 |
|
|
$ |
(10,094 |
) |
Net cash (used in)/provided by investing activities |
$ |
(935 |
) |
|
$ |
10,043 |
|
Net cash provided by/(used in)
financing activities |
$ |
14,094 |
|
|
$ |
(8,027 |
) |
Adjusted EBITDA breakdown
|
December 31, |
|
December 31, |
Three Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Core shipping operations |
$ |
70,068 |
|
|
$ |
16,588 |
|
Navios Logistics (including
noncontrolling interest) |
|
17,492 |
|
|
|
16,598 |
|
Equity in net earnings of
affiliate companies |
|
14,352 |
|
|
|
4,377 |
|
Adjusted
EBITDA |
$ |
101,912 |
|
|
$ |
37,563 |
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
December 31, |
|
December 31, |
Three Month Period
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net loss |
$ |
(42,042 |
) |
|
$ |
(9,659 |
) |
Depreciation and
amortization |
|
8,008 |
|
|
|
7,187 |
|
Amortization of deferred
drydock and special survey costs |
|
1,163 |
|
|
|
1,017 |
|
Interest expense and finance
cost, net |
|
19,815 |
|
|
|
12,936 |
|
Income tax expense |
|
1,322 |
|
|
|
1,623 |
|
EBITDA |
$ |
(11,734 |
) |
|
$ |
13,104 |
|
Impairment loss |
|
21,966 |
|
|
|
— |
|
Adjusted
EBITDA |
$ |
10,232 |
|
|
$ |
13,104 |
|
Navios Holdings Reconciliation of
EBITDA and Adjusted EBITDA to Cash from Operations
|
December 30, |
|
December 31, |
Year
Ended |
2021 |
|
|
2020 |
|
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net cash provided by operating activities |
$ |
109,620 |
|
|
$ |
25,211 |
|
Net increase/ (decrease) in
operating assets |
|
4,079 |
|
|
|
(6,757 |
) |
Net decrease/ (increase) in
operating liabilities |
|
22,233 |
|
|
|
(41,348 |
) |
Interest expense and finance
cost, net |
|
144,753 |
|
|
|
136,302 |
|
Deferred financing costs |
|
(8,870 |
) |
|
|
(7,863 |
) |
Allowance for credit
losses |
|
(646 |
) |
|
|
(541 |
) |
Equity in affiliate companies,
net of dividends received |
|
68,752 |
|
|
|
17,309 |
|
Payments for drydock and
special survey costs |
|
21,334 |
|
|
|
17,362 |
|
Noncontrolling interest |
|
24,785 |
|
|
|
(4,356 |
) |
Gain on bond
extinguishment |
|
951 |
|
|
|
11,204 |
|
Impairment loss/ loss on sale
of vessels, net |
|
(47,827 |
) |
|
|
(88,367 |
) |
Impairment loss on investment
in affiliate |
|
— |
|
|
|
(20,018 |
) |
Impairment of loan receivable
from affiliate company |
|
— |
|
|
|
(6,050 |
) |
Write-off of Navios Logistics’
deferred finance cost for bond extinguishment |
|
— |
|
|
|
(4,157 |
) |
EBITDA |
$ |
339,164 |
|
|
$ |
27,931 |
|
Impairment loss/ loss on sale
of vessels, net |
|
25,861 |
|
|
|
88,367 |
|
Portion of loss on Navios
Logistics impairment loss |
|
14,019 |
|
|
|
— |
|
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 |
|
— |
|
|
|
20,018 |
|
Write-off of Navios Logistics’
deferred finance cost for bond extinguishment |
|
— |
|
|
|
4,157 |
|
Adjusted
EBITDA |
$ |
353,192 |
|
|
$ |
153,367 |
|
Year Ended |
December 31, 2021 |
|
December 31,2020 |
(in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
Net cash provided by operating activities |
$ |
109,620 |
|
|
$ |
25,211 |
|
Net cash provided by investing
activities |
$ |
118,774 |
|
|
$ |
592 |
|
Net cash (used in)/provided by
financing activities |
$ |
(201,727 |
) |
|
$ |
6,654 |
|
Adjusted EBITDA breakdown
|
December 31, |
|
December 31, |
Year
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Core shipping operations |
$ |
214,894 |
|
|
$ |
41,519 |
|
Navios Logistics (including
noncontrolling interest) |
|
94,875 |
|
|
|
86,279 |
|
Equity in net earnings of
affiliate companies |
|
43,423 |
|
|
|
25,569 |
|
Adjusted
EBITDA |
$ |
353,192 |
|
|
$ |
153,367 |
|
Navios Logistics EBITDA Reconciliation to Net
Income
|
December 31, |
|
December 31, |
Year
Ended |
2021 |
|
2020 |
(in thousands of U.S.
dollars) |
(unaudited) |
|
(unaudited) |
Net (loss)/income |
$ |
(44,345 |
) |
|
$ |
12,041 |
|
Depreciation and
amortization |
|
31,655 |
|
|
|
28,939 |
|
Amortization of deferred
drydock and special survey costs |
|
4,122 |
|
|
|
3,958 |
|
Interest expense and finance
cost, net |
|
59,924 |
|
|
|
39,675 |
|
Income tax expense |
|
4,718 |
|
|
|
1,865 |
|
EBITDA |
$ |
56,074 |
|
|
$ |
86,478 |
|
Write-off of Navios Logistics’
deferred financing cost for bond and debt extinguishment |
|
— |
|
|
|
4,157 |
|
Impairment loss |
|
21,966 |
|
|
|
— |
|
Adjusted
EBITDA |
$ |
78,040 |
|
|
$ |
90,635 |
|
EXHIBIT II |
Owned 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 |
|
YearBuilt |
|
Deadweight (in metrictons) |
|
PurchaseOption(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 |
|
YearBuilt |
|
Deadweight (in metrictons) |
|
PurchaseOption
(1) |
Navios Lyra |
|
Handysize |
|
2012 |
|
34,718 |
|
|
Yes (2) |
Navios Venus |
|
Ultra Handymax |
|
2015 |
|
61,339 |
|
|
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 |
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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