- 15.6% increase in quarterly EBITDA to $53.4 million compared to
second quarter of 2008 - Reports EPS of $0.21 for the second
quarter of 2009 - Declares quarterly dividend of $0.06 per share
for the second quarter of 2009 - Updates charter-out coverage to
99.0% for 2009, 81.4% for 2010, 63.2% for 2011 and 57.7% for 2012
PIRAEUS, Greece, Aug. 19 /PRNewswire-FirstCall/ -- Navios Maritime
Holdings Inc. ("Navios Holdings") (NYSE:NM), a global, vertically
integrated seaborne shipping and logistics company, today reported
financial results for the second quarter and six months ended June
30, 2009. "We are pleased with our performance for the first six
months. We have solidified our balance sheet, originated
approximately $700.0 million of long term debt financing and agreed
to issue $213.1 million of mandatorily convertible preferred stock.
We have also improved our cash flow by acquiring six new vessels
which will generate about $60.0 million of annual EBITDA. We
accomplished all of this while protecting shareholders interests",
stated Angeliki Frangou, Chairman and CEO of Navios Holdings. Ms.
Frangou continued, "We believe that our good reputation, strong
balance sheet and significant cash flow afford Navios the
opportunity to be patient while we await market developments."
SECOND QUARTER 2009 HIGHLIGHTS -- RECENT DEVELOPMENTS Acquisition
of Six New Capesize Vessels Navios Holdings agreed to purchase four
Capesize vessels in June 2009 and two Capesize vessels in August
2009. All vessels are currently under construction at the same
South Korean shipyard. The vessels will be employed under existing
long term charter-out agreements with an average length of 9.8
years. The vessels are expected to generate approximately $60.0
million in annual EBITDA (assuming operating expense of $5,000 per
day and 360 revenue days per year). The nominal purchase price for
the six new vessels is approximately $466.0 million, of which
$213.1 million was funded by mandatorily convertible preferred
stock (described below). The use of preferred stock that
mandatorily converts into common at a price of not less than $10.00
per share effectively reduces the average vessel acquisition price
to $61.1 million from a nominal acquisition price of $77.7 million.
The details of the six new Capesize vessels and their related
charters are set forth in the below table: Name Type DWT Delivery
Annual Charter-out Charter Profit Date EBITDA rate per Term Share
(millions) day (net) (years) --- -------- ------- ------ -------
------- ------ --------- NB1 Capesize 180,000 8/2010 $8.7 $29,356
12 50/50 in excess of $37,500 NB2 Capesize 180,000 9/2010 $8.7
$29,356 10 50/50 in excess of $38,500 NB3 Capesize 180,000 2/2011
$8.7 $29,356 12 50/50 in excess of $37,500 NB4 Capesize 180,000
8/2010 $16.4 $50,588 5 n/a NB5 Capesize 180,000 10/2010 $8.7
$29,356 10 50/50 in excess of $38,500 NB6 Capesize 180,000 12/2010
$8.7 $29,356 10 50/50 in excess of $38,500 Delivery of Three
Newbuild Capesize Vessels During June and July 2009, Navios
Holdings took scheduled delivery of three newbuild Capesize
vessels, constructed by South Korean shipyards. The three vessels
will be employed under existing long-term charter-out contracts
that are expected to generate a total annual EBITDA of
approximately $46.6 million (assuming operating expense of $5,000
per day and 360 revenue days per year). These contracts have been
insured by an AA+ EU governmental agency. Navios Holdings issued a
$20.0 million unsecured bond due 2012 ("Debt Security") in partial
payment of the acquisition price of a Capesize vessel. The Debt
Security is not convertible into any other security of Navios
Holdings. Interest will accrue on the principal amount of the Debt
Security at the rate of 6% per annum. All accrued interest (which
will not be compounded) will be first due and payable in July 2012,
on the maturity date. The Debt Security may be prepaid by Navios
Holdings at any time without penalty. Issuance of Mandatorily
Convertible Preferred Stock In June 2009 and August 2009, Navios
Holdings agreed to issue $213.1 million in mandatorily convertible
preferred stock. $52.8 million will be used to partially finance
three existing Capesize vessels, scheduled for delivery in the
fourth quarter of 2009, in accordance with the amended agreements.
In general, the holders of the mandatorily convertible preferred
stock will receive an annual dividend equal to 2%, payable
quarterly, until such time as the preferred stock converts into
common stock. The preferred shares will mandatorily convert into
common stock upon the following events: (1) following the third
anniversary of issuance, if the common stock closing price is at
least $20.00 per share for 10 consecutive business days, then the
outstanding shares of preferred stock automatically convert at a
conversion price of $14.00 per share of common stock; and (2) 30%
of the then-outstanding mandatorily convertible preferred stock
will mandatorily convert into common stock five years from the date
of issuance and any remaining then-outstanding preferred stock will
convert 10 years from the date of issuance at a $10.00 price per
share of common stock. The holder shall have the right to convert
the shares of preferred stock into common stock prior to the
scheduled maturity date at a price of $14.00 per share of common
stock. The number of shares of common stock that may be issued
ranges from 15.2 million, if all shares of preferred stock are
converted at $14.00 per share, to 21.3 million, if all shares of
preferred stock are converted at $10.00 per common share. Sale of
All Rights to the Panamax Vessel "Navios Sagittarius" On June 10,
2009, Navios Holdings sold to Navios Maritime Partners L.P.
("Navios Partners") all of the rights to the Navios Sagittarius, a
2006 Japanese-built Panamax vessel with a capacity of 75,756 dwt,
including a long term charter-out agreement through November 2018.
The sale price amounted to $34.6 million and was received entirely
in cash. 12-month Option for the Capesize Navios Bonavis (ex TBN I)
- Replacing Purchase Obligation Navios Holdings released Navios
Partners from its obligation to purchase the Capesize vessel Navios
Bonavis for $130.0 million and instead has granted a 12-month
option to purchase the vessel for $125.0 million. In return, Navios
Partners issued to Navios Holdings 1,000,000 subordinated series A
units. For purposes of US GAAP, this issuance was recognized as a
$6.1 million Non-Cash Income for the second quarter ended June 30,
2009. In connection with this transaction, Navios Holdings was also
released, for a two-year period, from the Omnibus Agreement
restriction prohibiting Navios Holdings from acquiring qualifying
vessels from third parties. Navios Holdings was not released from
the requirement that it offer to sell to Navios Partners qualifying
vessels in Navios Holdings' existing fleet. Navios Partners also
issued 20,408 additional general partnership units to the General
Partner in exchange for $0.2 million. Following the above
transactions, Navios Holdings owns a 46.7% equity interest in
Navios Partners which includes 2% general partner interest.
Financial Highlights -- EBITDA increased by 15.6% to $53.4 million
in the second quarter of 2009 from $46.2 million in the same period
in 2008 -- EBITDA increased by 13.8% to $95.8 million in the six
months ended June 30, 2009 from $84.2 million fin the same period
in 2008 -- Maintained net debt to book capitalization at 45.0% at
June 30, 2009 compared with 43.5% at December 31, 2008 --
Shareholders' Equity increased by 6.5% to $858.0 million at June
30, 2009 compared with $805.8 million at December 31, 2008 Dividend
Policy: The Board of Directors declared a quarterly cash dividend
for the second quarter of 2009 of $0.06 per share of common stock.
This dividend is payable on October 2, 2009 to stockholders of
record as of September 18, 2009. The declaration and payment of any
further dividend remains subject to the discretion of the Board and
will depend on, among other things, Navios Holdings' cash
requirements as measured by market opportunities and restrictions
under its credit agreements. Time Charter Coverage: Navios Holdings
has extended its long-term fleet employment by entering into
agreements to charter-out vessels for periods ranging from one to
12 years. As of August 19, 2009, Navios Holdings had contracted
99.0%, 81.4%, 63.2% and 57.7% of its available days on a
charter-out basis for 2009, 2010, 2011 and 2012, respectively,
equivalent to $251.6 million, $307.1 million, $317.4 million and
$305.7 million in revenue, respectively. The average contractual
daily charter-out rate for the core fleet is $25,708, $30,471,
$34,627 and $35,422 for 2009, 2010, 2011 and 2012, respectively.
The average daily charter-in rate for the active long-term
charter-in vessels for 2009 is $10,003. The above figures do not
include vessels servicing the Contracts of Affreightment ("COA")
and Logistics businesses. Fleet Profile: Navios Holdings controls a
fleet of 59 vessels totaling 6.3 million dwt, of which 32 are owned
and 27 are chartered-in under long-term charters. Navios Holdings
currently operates 38 vessels (eight Capesize, 13 Panamax, 16 Ultra
Handymax and one Handysize product tanker vessel) totaling 3.3
million dwt and has 21 newbuildings to be delivered. These vessels
are expected to be delivered at various dates through 2013. The
average age of the operating fleet is 4.8 years. Exhibit 2 displays
the "Core Fleet" profile of Navios Holdings. Financial Results For
the following results and the selected financial data presented
herein, Navios Holdings has compiled consolidated statement of
income for the three month periods ended June 30, 2009 and 2008.
The information was derived from the unaudited condensed
consolidated financial statements for the respective periods.
EBITDA is a non-US GAAP financial measure and should not be used in
isolation or substitution for Navios Holdings' results. Second
Quarter 2009 Results (in thousands of U.S. dollars, unless
otherwise stated, except per share data): Three Months Three Months
ended ended June 30, June 30, 2009 2008 --------- --------- Revenue
$142,208 $328,040 EBITDA (*) $53,393 $46,175 Net income (*) $22,137
$79,166 EPS (*) $0.21 $0.72 (*) EBITDA, Net Income and EPS for the
three months ended June 30, 2009, were positively affected by $16.8
million gain on sale of assets, $6.1 million non cash compensation
from Navios Partners and were negatively affected by $13.8 million
unrealized mark-to-market losses on common units of Navios Partners
accounted for as available for sale securities. Net Income and EPS
for the three month period ended June 30, 2008 were positively
affected by the effect of a $57.3 million write-off of deferred
Belgian taxes and $0.2 million gain on sale of assets. Revenue from
vessel operations for the three months ended June 30, 2009 was
$107.1 million as compared to $302.5 million for the same period
during 2008. The decrease in revenue was mainly attributable to a)
the decrease in Time Charter Equivalent ("TCE") per day by 43.6% to
$26,684 per day in the first quarter of 2009 from $47,313 per day
in the same period of 2008 and b) the decrease in the available
days for the fleet by 37.8% to 3,721 in the first quarter of 2009
from 5,987 days in the same period of 2008. The decrease in days is
mainly attributable to the significantly reduced short term fleet
activity by 2,461 days, from 3,035 days in the second quarter of
2008 to 574 days in the second quarter of 2009. Revenue from the
logistics business was $35.1 million for the three months ended
June 30, 2009 as compared to $25.5 million during the same period
of 2008. This increase was mainly due to the increased fleet of
Navios Logistics (which became operating in the fourth quarter of
2008) compared to the same period of 2008. EBITDA for the second
quarter of 2009 and 2008 was $53.4 million and $46.2 million,
respectively. The $7.2 million increase in EBITDA was primarily due
to a decrease in time charter, voyage and logistic business
expenses by $197.6 million from $280.5 million in the second
quarter of 2008 to $82.9 million in the same period in 2009 and an
increase in gains from sale of assets by $16.6 million. This
overall favorable variance of $214.2 was mitigated mainly by a
decrease in revenue by $185.8 million from $328.0 million in the
second quarter of 2008 to $142.2 million for the same period in
2009, an increase in direct vessel expenses (excluding the
amortization of deferred dry dock and special survey costs) by $0.9
million from $6.4 million in the second quarter of 2008 to $7.3
million for the same period in 2009, an increase in general and
administrative expenses by $1.7 million from $8.4 million in the
second quarter of 2008 to $10.1 million for the same period in 2009
(excluding $0.5 million and $0.7 million share-based compensation
for the second quarter of 2009 and 2008, respectively), a decrease
in gain from derivatives by $7.1 million from $7.7 million for the
second quarter of 2008 to $0.6 million for the same period in 2009,
an increase in net other expenses by $10.3 million, a decrease in
equity in net earnings from affiliated companies by $0.9 million,
from $6.3 million for the second quarter of 2008 to $5.4 million
for the same period of 2009 and an increase in income attributable
to non-controlling interests by $0.3 million from $1.3 million in
the second quarter of 2008 to $1.6 million in the same period of
2009. EBITDA from the logistics business was $8.6 million for the
three months ended June 30, 2009 as compared to $8.2 million during
the same period in 2008. Net income for second quarter ended June
30, 2009 was $22.1 million as compared to $79.2 million for the
comparable period of 2008. The decrease of net income by $57.1
million was mainly due to the increase of depreciation and
amortization by $2.7 million, the increase in net interest expense
by $5.4 million and the decrease in income tax by $56.4 million due
to the write-off of deferred income taxes of $57.3 million in the
second quarter of 2008. These were mitigated by the increase of
$7.2 million in EBITDA discussed above, as well as the $0.2 million
decrease in share-based compensation. First Half of 2009 Results
(in thousands of U.S. dollars, unless otherwise stated, except per
share data): Six Months Six Months ended ended June 30, June 30,
2009 2008 --------- --------- Revenue $289,376 $654,546 EBITDA (*)
$95,771 $84,173 Net income (*) $34,130 $93,411 EPS (*) $0.33 $0.84
(*) EBITDA, Net Income and EPS for the six months ended June 30,
2009, were positively affected by $16.8 million gain on sale of
assets, $6.1 million non cash compensation from Navios Partners and
were negatively affected by $13.8 million unrealized mark-to-market
losses on common units of Navios Partners, accounted for as
available for sale securities. Net Income and EPS for the six month
period ended June 30, 2008 were positively affected by the effect
of a $57.3 million write-off of deferred Belgian taxes and $2.7
million gain on sale of assets. Revenue from vessels operations for
the six months ended June 30, 2009 was $224.9 million as compared
to $607.5 million for the same period during 2008. The decrease in
revenue was mainly attributable to a) the decrease in TCE per day
by 41.2% to $27,544 per day in the first half of 2009 from $46,824
per day in the same period of 2008 and b) the decrease in the
available days for the fleet by 36.7% to 7,601 in the first half of
2009 from 12,000 days in the same period of 2008. The decrease in
days is mainly attributable to the significantly reduced short term
fleet activity by 4,628 days, from 6,099 days in the first half of
2008 to 1,471 days in the first half of 2009. Revenue from the
logistics business was $64.4 million in the first half of 2009 as
compared to $47.0 million during the same period of 2008. This
increase was mainly due to the increased fleet of Navios Logistics
(which commenced operations in the fourth quarter of 2008) compared
to the same period of 2008. EBITDA for the first half of 2009 and
2008 was $95.8 million and $84.2 million, respectively. The $11.6
million increase in EBITDA was primarily due to a decrease in time
charter, voyage and logistic business expenses by $387.8 million
from $562.5 million in the first half of 2008 to $174.7 million in
the same period in 2009, an increase in equity in net earnings from
affiliated companies by $2.2 million, from $8.3 million for the
first half of 2008 to $10.5 million for the same period of 2009 and
an increase in gains from sale of assets by $14.1 million. This
overall favorable variance of $404.1 was mitigated mainly by a
decrease in revenue by $365.1 million from $654.5 million in the
first half of 2008 to $289.4 million for the same period in 2009,
an increase in direct vessel expenses (excluding the amortization
of deferred dry dock and special survey costs) by $2.5 million from
$11.5 million in the first half of 2008 to $14.0 million for the
same period in 2009, an increase in general and administrative
expenses by $3.6 million from $16.3 million in the first half of
2008 to $19.9 million for the same period in 2009 (excluding $1.1
million and $1.5 million share-based compensation for the first
half of 2009 and 2008, respectively), a decrease in gain from
derivatives by $9.7 million from $10.3 million for the first half
of 2008 to $0.6 million for the same period in 2009, an increase in
net other expenses by $11.4 million, and an increase in income
attributable to non-controlling interests by $0.2 million from $1.8
million in the first half of 2008 to $2.0 million in the same
period of 2009. EBITDA from the logistics business was $14.4
million for the six months ended June 30, 2009 as compared to $14.1
million during the same period in 2008. Net income for six months
ended June 30, 2009 was $34.1 million as compared to $93.4 million
for the comparable period of 2008. The decrease of net income by
$59.3 million was mainly due to the increase in depreciation and
amortization by $4.5 million, the increase in net interest expense
by $10.3 million, the increase in drydock amortization by $0.2
million and the decrease in income taxes by $56.3 million due to
the write-of of deferred income taxes of $57.3 million in the first
half of 2008. These were mitigated by the increase of $11.6 million
in EBITDA discussed above, as well as the $0.4 million decrease in
share-based compensation. Purchase Options: Navios Holdings has
options to acquire four of the 18 chartered-in vessels currently in
operation within the next two years (two Ultra-Handymaxes, one
Panamax and one Capesize) and eight of the ten long-term
chartered-in vessels on order (on two of the 12 purchase options
Navios Holdings holds a 50% initial purchase option). Fleet Summary
Data: The following table reflects certain key indicators
indicative of the performance of the Navios Holdings and its fleet
performance for the three and six month periods ended June 30, 2009
and 2008. Three Months Ended Six Months Ended June 30, June 30,
June 30, June 30, 2009 2008 2009 2008 (Unaudited) (Unaudited)
(Unaudited) (Unaudited) ----------- ----------- ----------
---------- Available Days (1) 3,721 5,987 7,601 12,000 Operating
Days (2) 3,717 5,970 7,583 11,979 Fleet Utilization (3) 99.9% 99.7%
99.8% 99.8% Equivalent Vessels 40.9 65.8 42.0 65.9 Time Charter
Equivalent (4) $26,684 $47,313 $27,544 $46,824 (1) Available days
for fleet are total calendar days the vessels were in Navios
Holdings' possession for the relevant period after subtracting
off-hire days associated with major repairs, drydocks or special
surveys. The shipping industry uses available days to measure the
number of days in a relevant period during which vessels should be
capable of generating revenues. (2) Operating days are the number
of available days in the relevant period less the aggregate number
of days that the vessels are off-hire due to any reason, including
unforeseen circumstances. The shipping industry uses operating days
to measure the aggregate number of days in a relevant period during
which vessels actually generate revenues. (3) Fleet utilization is
the percentage of time that Navios Holdings' vessels were available
for revenue generating available days, and is determined by
dividing the number of operating days during a relevant period by
the number of available days during that period. The shipping
industry uses fleet utilization to measure a company's efficiency
in finding suitable employment for its vessels. (4) Time Charter
Equivalent, is defined as voyage and time charter revenues less
voyage expenses during a relevant period divided by the number of
available days during the period. Conference Call: As already
announced, on Thursday, August 20, 2009 at 8:30 am EDT, Navios
Holdings' members of senior management will host a conference call
to provide highlights and commentary on the second quarter and six
months ended June 30, 2009. A supplemental slide presentation will
be available on the Navios Holdings website at
http://www.navios.com/ under the "Investors" section at 7:30 am EDT
on the day of the call. The conference call details are as follows:
Call Date/Time: Thursday, August 20, 2009; 8:30 am EST Call Title:
Navios Maritime Holdings Inc. Q2 2009 Financial Results Conference
Call US Dial In: +1.888.694.4702 International Dial In:
+1.973.582.2741 Conference ID: 24691566 The conference call replay
will be available shortly after the live call and remain available
for one business week at the following numbers: US Replay Dial In:
+1.800.642.1687 International Replay Dial In: +1.706.645.9291
Conference ID: 24691566 This call will be simultaneously Webcast at
the following Web address:
http://www.videonewswire.com/event.asp?id=61411. The Webcast will
be archived and available at this same Web address for one month
following the call. About Navios Maritime Holdings Inc. Navios
Maritime Holdings Inc. is a global, vertically integrated seaborne
shipping and logistics company focused on the transport and
transshipment of drybulk commodities including iron ore, coal and
grain. Navios Holdings may, from time to time, be required to offer
certain owned Capesize and Panamax vessels to Navios Maritime
Partners L.P. for purchase at fair market value according to the
terms of the Omnibus Agreement. For more information about Navios
Holdings please visit its website: http://www.navios.com/. About
Navios South American Logistics Inc. Navios Logistics was formed in
2007 through the acquisition of control of the Horamar Group,
established in 1975. Navios Logistics specializes in transporting
and storing liquid and dry bulk cargoes in the Hidrovia region
connecting Argentina, Bolivia, Brazil, Paraguay and Uruguay. Navios
Logistics currently controls a fleet of 240 barges and vessels. It
also owns and operates an upriver oil storage and transfer facility
in Paraguay and the largest bulk transfer and storage port terminal
in Uruguay. About Navios Maritime Partners L.P. Navios Maritime
Partners L.P. (NYSE:NMM), a publicly traded master limited
partnership formed by Navios Holdings is an owner and operator of
Capesize and Panamax vessels. For more information, please visit
its website: http://www.navios-mlp.com/ Forward Looking Statements
-- Safe Harbor This press release contains 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 and Navios Holdings'
growth strategy and measures to implement such strategy; including
expected vessel acquisitions and entering into further time
charters. Words such as "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
revenues and time charters. 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 changes in the demand for dry bulk vessels, competitive
factors in the market in which Navios Holdings operates; 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. 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. Contacts: Public
& Investor Relations Navios Maritime Holdings Inc. Investor
Relations +1.212.279.8820 EXHIBIT I NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS (Expressed in thousands of US Dollars,
except share data) June 30, December 31, 2009 2008 ---------
---------- (unaudited) ASSETS Current assets Cash and cash
equivalents $211,500 $133,624 Restricted cash 25,531 17,858
Accounts receivable, net of allowance for doubtful accounts of
$9,384 as at June 30, 2009 and $8,343 as at December 31, 2008
72,996 109,780 Short term derivative asset 108,683 214,156 Short
term backlog asset - 44 Due from affiliate companies 6,509 1,677
Prepaid expenses and other current assets 27,447 28,270 Total
current assets 452,666 505,409 Deposit for vessel acquisitions
477,058 404,096 Vessels, port terminal and other fixed assets, net
938,934 737,094 Long term derivative assets 22,223 36,697 Other
long term assets 55,768 46,855 Investments in affiliates 9,166
5,605 Investments in available for sale securities 31,158 22,358
Intangible assets other than goodwill 320,285 347,878 Goodwill
147,632 147,632 Total non-current assets 2,002,224 1,748,215 Total
assets $2,454,890 $2,253,624 LIABILITIES AND EQUITY Current
liabilities Accounts payable $35,754 $72,520 Dividends payable
6,012 9,096 Accrued expenses 34,216 34,468 Deferred income 11,423
11,319 Short term derivative liability 66,205 128,952 Current
portion of long term debt 82,190 15,177 Total current liabilities
235,800 271,532 Senior notes, net of discount 298,448 298,344 Long
term debt, net of current portion 751,446 574,194 Unfavorable lease
terms 66,458 76,684 Long term liabilities and deferred income
79,513 47,827 Deferred tax liability 23,326 26,573 Long term
derivative liability 10,950 23,691 Total non-current liabilities
1,230,141 1,047,313 Total liabilities 1,465,941 1,318,845
Commitments and contingencies - - Stockholders' equity Preferred
stock - $0.0001 par value, authorized 1,000,000 shares, 1,870 and
none issued and outstanding as of June 30, 2009 and December 31,
2008, respectively. - - Common stock - $0.0001 par value,
authorized 250,000,000 shares, issued and outstanding 100,205,184
and 100,488,784 as of June 30, 2009 and December 31, 2008,
respectively 10 10 Additional paid-in capital 502,248 494,719
Accumulated other comprehensive loss - (22,578) Retained earnings
355,754 333,669 Total stockholders' equity 858,012 805,820
Noncontrolling interest 130,937 128,959 Total equity 988,949
934,779 Total liabilities and equity $2,454,890 $2,253,624 NAVIOS
MARITIME HOLDINGS INC. CONSOLIDATED STATEMENTS OF INCOME (Expressed
in thousands of US Dollars -- except per share data) Three Month
Three Month Six Month Six Month Period Period Period Period ended
ended ended ended June 30, June 30, June 30, June 30, 2009 2008
2009 2008 (unaudited) (unaudited) (unaudited) (unaudited) Revenue
$142,208 $328,040 $289,376 $654,546 Time charter, voyage and
logistic business expenses (82,883) (280,548) (174,682) (562,476)
Direct vessel expenses (7,915) (6,885) (15,085) (12,518) General
and administrative expenses (10,561) (9,065) (20,992) (17,778)
Depreciation and amortization (16,377) (13,837) (31,917) (27,442)
Interest income/(expense) and finance cost, net (14,737) (9,307)
(29,102) (18,799) Gain on derivatives 645 7,743 619 10,255 Gain on
sale of assets/partial sale of subsidiary 16,790 174 16,790 2,748
Other income/(expense), net (9,784) 536 (10,992) 462 Income before
equity in net earnings of affiliate companies 17,386 16,851 24,015
28,998 Equity in net earnings of affiliated companies 5,399 6,257
10,499 8,336 Income before taxes $22,785 $23,108 $34,514 $37,334
Income taxes 962 57,360 1,594 57,868 Net income 23,747 80,468
36,108 95,202 Less: Net income attributable to the noncontrolling
interest (1,610) (1,302) (1,978) (1,791) Net income attributable to
Navios Holdings common stockholders $22,137 $79,166 $34,130 $93,411
Basic net income per share attributable to Navios Holdings common
stockholders $0.22 $0.75 $0.34 $0.88 Weighted average number of
shares, basic 99,839,013 105,990,135 99,947,002 106,181,035 Diluted
net income per share attributable to Navios Holdings common
stockholders $0.21 $0.72 $0.33 $0.84 Weighted average number of
shares, diluted 105,281,778 110,452,110 103,562,826 110,574,248
NAVIOS MARITIME HOLDINGS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of US Dollars) Six Month Six Month Period
Period ended ended June 30, June 30, 2009 2008 -------- --------
(unaudited) (unaudited) OPERATING ACTIVITIES: Net income
attributable to Navios Holdings common stockholders $34,130 $93,411
Adjustments to reconcile net income to net cash provided by
operating activities: Non-cash adjustments 34,934 (28,064) Decrease
in operating assets 26,644 36,760 Increase/(Decrease) in operating
liabilities 19,839 (36,270) Payments for dry dock and special
survey costs (1,831) (2,288) Net cash provided by operating
activities 113,716 63,549 INVESTING ACTIVITIES: Acquisition of
subsidiary, net of cash acquired - (105,069) Deposits in escrow in
connection with acquisition of subsidiary - (5,000) Restricted cash
for assets acquisition - (34,506) Acquisition of vessels (121,109)
(39,161) Deposits for vessel acquisitions (105,657) (81,444)
Receipts from finance lease 268 4,569 Proceeds from sale of assets
34,600 35,088 Purchase of property and equipment (28,002) (36,885)
Net cash used in investing activities (219,900) (262,408) FINANCING
ACTIVITIES: Proceeds from long term loan, net of deferred finance
fees 214,104 104,089 Repayment of long term debt and payment of
principal (6,948) (24,710) Dividends paid (15,129) (19,191)
Acquisition of treasury stock (717) (9,130) Increase in restricted
cash (7,250) - Issuance of common stock - 4,494 Net cash provided
by financing activities 184,060 55,552 Increase/(decrease) in cash
and cash equivalents 77,876 (143,307) Cash and cash equivalents,
beginning of period 133,624 427,567 Cash and cash equivalents, end
of period $211,500 $284,260 SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION Cash paid for interest $25,472 $21,328 Cash paid for
income taxes $1,191 $1,217 Non-cash investing and financing
activities Issuance of shares, preferred stock and convertible debt
in connection with the acquisition of vessels $39,070 $ -
Disclosure of Non-GAAP Financial Measures EBITDA: EBITDA represents
net income before interest, taxes, depreciation and amortization.
Navios Holdings uses EBITDA because Navios Holdings believes that
EBITDA is a basis upon which liquidity can be assessed and because
Navios Holdings believes that EBITDA presents useful information to
investors regarding Navios Holdings' ability to service and/or
incur indebtedness. EBITDA has limitations as an analytical tool,
and should not be considered in isolation or as a substitute for
analysis of Navios Holdings' results as reported under US GAAP.
Some of these limitations are: (i) EBITDA does not reflect changes
in, or cash requirements for, working capital needs; and (ii)
although depreciation and amortization are non-cash charges, the
assets being depreciated and amortized may have to be replaced in
the future, and EBITDA does not reflect any cash requirements for
such capital expenditures. Because of these limitations, EBITDA
should not be considered as a principal indicator of Navios
Holdings' performance. EBITDA Reconciliation to Cash from
Operations Three Months Ended June 30, June 30, (in thousands of US
Dollars) 2009 2008 -------- -------- Net cash provided by operating
activities $63,729 $53,930 Net increase (decrease) in operating
assets (3,008) 3,272 Net increase in operating liabilities (24,925)
(19,826) Net interest cost 14,737 9,306 Deferred finance charges
(1,419) (461) Provision for losses on accounts receivable (1,041) -
Unrealized loss on FFA derivatives, warrants and interest rate
swaps (207) (2,863) Earnings in affiliates and joint ventures, net
of dividends received (2,201) 3,460 Payments for drydock and
special survey 244 485 Non-Controlling interest (1,610) (1,302)
Unrealized losses on available for sale securities (13,778) - Non
cash compensation received 6,082 - Gain on sale of assets/partial
sale of subsidiary 16,790 174 EBITDA $53,393 $46,175 =======
======= Six Months Ended June 30, June 30, (in thousands of US
Dollars) 2009 2008 --------------------------- --------- --------
Net cash provided by operating activities $113,716 $63,549 Net
decrease in operating assets (26,644) (37,160) Net (increase)
decrease in operating liabilities (19,839) 36,668 Net interest cost
29,102 18,799 Deferred finance charges (2,128) (925) Provision for
losses on accounts receivable (1,041) - Unrealized loss on FFA
derivatives, warrants and interest rate swaps (3,820) (3,167)
Earnings in affiliates and joint ventures, net of dividends
received (2,522) 3,164 Payments for drydock and special survey
1,831 2,288 Non-Controlling interest (1,978) (1,791) Unrealized
losses on available for sale securities (13,778) - Non cash
compensation received 6,082 - Gain on sale of assets/partial sale
of subsidiary 16,790 2,748 ------ ----- EBITDA $95,771 $84,173
======= ======= EXHIBIT 2 Owned Vessels Year Vessel Name Vessel
Type Built Deadweight --------------- -------------- -------
---------- (in metric tons) Navios Ionian Ultra Handymax 2000
52,068 Navios Apollon Ultra Handymax 2000 52,073 Navios Horizon
Ultra Handymax 2001 50,346 Navios Herakles Ultra Handymax 2001
52,061 Navios Achilles Ultra Handymax 2001 52,063 Navios Meridian
Ultra Handymax 2002 50,316 Navios Mercator Ultra Handymax 2002
53,553 Navios Arc Ultra Handymax 2003 53,514 Navios Hios Ultra
Handymax 2003 55,180 Navios Kypros Ultra Handymax 2003 55,222
Navios Ulysses Ultra Handymax 2007 55,728 Navios Vega Ultra
Handymax 2009 58,792 Navios Magellan Panamax 2000 74,333 Navios
Star Panamax 2002 76,662 Navios Hyperion Panamax 2004 75,707 Navios
Orbiter Panamax 2004 76,602 Navios Asteriks Panamax 2005 76,801
Navios Pollux Capesize 2009 180,727 Navios Happiness Capesize 2009
180,022 Navios Bonavis Capesize 2009 180,022 Vanessa Product
Handysize 2002 19,078 Owned Vessels to be delivered Vessel Delivery
Vessel Name Type Date Deadweight ---------------- -------- -------
---------- (in metric tons) Navios Aurora II Capesize 10/2009
172,000 Navios Lumen Capesize 11/2009 181,000 Navios Antares
Capesize 11/2009 172,000 Navios Stellar Capesize 12/2009 172,000
Navios Phoenix Capesize 1/2010 180,000 Navios Fulvia Capesize
8/2010 180,000 NB2 Capesize 8/2010 180,000 NB3 Capesize 9/2010
180,000 NB4 Capesize 2/2011 180,000 NB5 Capesize 10/2010 180,000
NB6 Capesize 12/2010 180,000 Long term Chartered-in Fleet in
Operation Year Purchase Vessel Name Vessel Type Built Deadweight
Option(1) -------------- -------------- ----- ----------
----------- (in metric tons) Navios Vector Ultra Handymax 2002
50,296 No Navios Astra Ultra Handymax 2006 53,468 Yes Navios
Primavera Ultra Handymax 2007 53,464 Yes Navios Armonia Ultra
Handymax 2008 55,100 No Navios Cielo Panamax 2003 75,834 No Navios
Orion Panamax 2005 76,602 No Navios Titan Panamax 2005 82,936 No
Navios Altair Panamax 2006 83,001 No Navios Esperanza Panamax 2007
75,200 No Torm Antwerp Panamax 2008 75,250 No Belisland Panamax
2003 76,602 No Golden Heiwa Panamax 2007 76,662 No SA Fortius
Capesize 2001 171,595 No C. Utopia Capesize 2007 174,000 No
Beaufiks Capesize 2004 180,181 Yes Rubena N Capesize 2006 203,233
No SC Lotta Capesize 2009 170,500 No Long term Chartered-in Fleet
to be Delivered Vessel Delivery Purchase Vessel Name Type Date
Deadweight Option(1) --------------- --------- ------- ---------
-------- (in metric tons) Phoenix Beauty Capesize 01/2010 170,500
No Kleimar TBN Capesize 04/2010 176,800 No Navios TBN Handysize
02/2011 35,000 Yes (2) Navios TBN Handysize 04/2011 35,000 Yes (2)
Navios TBN Panamax 09/2011 80,000 Yes Navios TBN Capesize 09/2011
180,200 Yes Navios TBN Ultra 03/2012 61,000 Yes Handymax Kleimar
TBN Capesize 07/2012 180,000 Yes Navios TBN Panamax 01/2013 82,100
Yes Navios TBN Ultra 08/2013 61,000 Yes Handymax (1) Generally,
Navios Holdings may exercise its purchase option after three to
five years of service. (2) The initial 50% purchase option on each
vessel is held by Navios Holdings. DATASOURCE: Navios Maritime
Holdings Inc. CONTACT: Public & Investor Relations, Navios
Maritime Holdings Inc., Investor Relations, +1.212.279.8820, Web
Site: http://www.navios.com/
Copyright