Press Release

Navios Maritime Holdings Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2017

11/21/17
  • $334.5 million revenue for 9M 2017; $120.6 million for Q3 2017; $36.4 million net cash from operating activities for 9M 2017
  • $80.1 million Adjusted EBITDA for 9M 2017; $31.2 million Adjusted EBITDA for Q3 2017
  • $119.2 million of cash as of September 30, 2017
  • Refinanced the Senior Unsecured Notes maturing in 2019 with new callable Senior Secured Notes
  • Positioned to capture market recovery through 21,506 available days; 19,106 open and index days

MONACO, Nov. 21, 2017 (GLOBE NEWSWIRE) -- Navios Maritime Holdings Inc. ("Navios Holdings" or "the Company") (NYSE:NM), a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the third quarter and nine months ended September 30, 2017.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, "I am very pleased with our results for the third quarter of 2017, for which we reported revenues of $120.6 million and adjusted EBITDA of $31.2 million."

Angeliki Frangou continued: "On November 14, 2017, we successfully refinanced the 8.125% Senior Unsecured Notes that were maturing in 15 months, with $305.0 million of 11.25% Senior Secured Notes. The new notes are callable at any time which provides the flexibility to refinance these new notes as the dry bulk market and our financial performance improve.”

HIGHLIGHTS – RECENT DEVELOPMENTS

Successfully Refinanced the 2019 Maturity

On November 14, 2017, Navios Holdings announced the pricing of $305.0 million 11.25% Senior Secured Notes due 2022 (the “Notes”). The Notes will be secured by a first priority lien on the capital stock owned by certain of the subsidiary guarantors of Navios Holdings in each of Navios Maritime Partners L.P. (“Navios Partners”), Navios GP L.L.C., Navios Maritime Acquisition Corporation (“Navios Acquisition”), Navios South American Logistics Inc. (“Navios Logistics”) and Navios Maritime Containers Inc. The Notes will be guaranteed by all of the Company’s direct and indirect subsidiaries, except for certain subsidiaries designated as unrestricted subsidiaries, including Navios Logistics. The net proceeds of the offering will be used to complete a cash tender offer for any and all of Company’s outstanding 8 1⁄8% Senior Notes due 2019 and to redeem any and all such notes that are not purchased in the tender offer after all conditions to the tender offer are satisfied or waived, including the payment of related fees and expenses and any redemption premium, with any remaining proceeds to be used for general corporate purposes.

Other debt developments

On November 3, 2017, Navios Holdings prepaid in full the total outstanding amount borrowed under its secured loan facility with Navios Acquisition of up to $70.0 million entered into in September 2016 with a payment of $55.1 million and extinguished the secured loan facility. The prepayment amount consisted of the $50.0 million drawn under the facility and $5.1 million of accrued interest.

On November 1, 2017, Navios Holdings agreed to extend $18.3 million outstanding balance under one of its secured credit facilities originally due by September 2018 for three years to September 2021.

Navios Logistics

On November 3, 2017, Navios Logistics completed the borrowing of a new $100.0 million Term Loan B (the “Term Loan B”). The Term Loan B bears an interest rate of LIBOR plus 475 basis points and has a four year term with 1.0% amortization per annum. The Term Loan B is secured by first priority mortgages covering certain vessels owned by subsidiaries of Navios Logistics, as well as by assignments of certain receivables. Navios Logistics used $70.0 million of the proceeds of the Term Loan B to finance a cash dividend to its equity holders, of which Navios Holdings received $44.7 million. Navios Logistics intends to use the remaining proceeds of the Term Loan B: (i) for general corporate purposes and (ii) to pay fees and expenses relating to the Term Loan B.

Fleet update

Navios Holdings controls a fleet of 64 operating vessels totaling 6.6 million dwt, of which 38 are owned and 26 are chartered-in under long-term charters (collectively, the "Core Fleet"). The fleet consists of 21 Capesize, 23 Panamax, 18 Ultra Handymax and two Handysize vessels with an average age of 8.3 years.

As of November 1, 2017, Navios Holdings has chartered-out 66.6% and 11.2% of available days for the remaining three months of 2017 and 2018, respectively (excluding index and profit sharing days). The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining three months of 2017 is $12,521.

The above figures do not include the fleet of Navios Logistics and vessels servicing contracts of affreightment.

Exhibit II provides certain details of the Core Fleet of Navios Holdings. It does not include the fleet of Navios Logistics.

Earnings Highlights

EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Holdings’ results calculated in accordance with U.S. GAAP.

See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share of Navios Holdings (including Navios Logistics), and EBITDA of Navios Logistics (on a stand-alone basis), and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.

Third Quarter 2017 and 2016 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The third quarter 2017 and 2016 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

           
    Three Month
Period Ended
  Three Month
Period Ended
 
     September 30,    September 30,  
    2017   2016  
    (unaudited)   (unaudited)  
Revenue   $ 120,555     $ 113,087      
Net Loss   $ (28,332 )   $ (27,503 )    
Adjusted Net Loss   $ (28,332 )   $ (22,420 ) (1 )  
Net cash (used in)/provided by operating activities   $ (12,689 )   $ 2,140      
EBITDA   $ 31,192     $ 46,389      
Adjusted EBITDA   $ 31,192     $ 38,465   (1 )  
Basic Loss per Share   $ (0.26 )   $ (0.30 ) (1 )  
Adjusted Basic Loss per share   $ (0.26 )   $ (0.25 )    
                     


(1)     Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share for the three months ended September 30, 2016 exclude (i) a $16.0 million gain on bond extinguishment and (ii) an $8.0 million loss relating to our share in Navios Partners’ impairment losses. Adjusted Net Loss and Adjusted Basic Loss per Share for the three months ended September 30, 2016 also exclude a $13.0 million write-off of intangible assets due to the early redelivery of a charter-in vessel.
       

Revenue from dry bulk vessel operations for the three months ended September 30, 2017 was $61.0 million as compared to $49.7 million for the same period during 2016. The increase in dry bulk revenue was mainly attributable to (i) the increase in the time charter equivalent (“TCE”) per day by 5.2% to $9,481 per day in the third quarter of 2017, as compared to $9,010 per day in the same period of 2016; and (ii) an increase in available days of our fleet by 579 days, mainly due to an increase in long-term charter-in fleet available days.

Revenue from the logistics business was $59.6 million for the three months ended September 30, 2017 as compared to $63.4 million for the same period in 2016. The decrease was mainly attributable to (i) a $6.4 million decrease in revenue from the barge business mainly due to the expiration of certain iron ore transportation contracts; and (ii) a $0.6 million decrease in revenue from the cabotage business mainly due to the less operating days. The overall decrease was partially mitigated by a $3.2 million increase in revenue from the port terminal business mainly due to the increase in the volume and tariffs in the dry port terminal and to the commencement of operations at the new iron ore terminal.

Net Loss of Navios Holdings was $28.3 million and $27.5 million for the three months ended September 30, 2017 and 2016, respectively.  Net Loss was affected by the items described in the table above. Excluding these items, Adjusted Net Loss of Navios Holdings for the three months ended September 30, 2017 was $28.3 million as compared to $22.4 million for the same period of 2016. The $5.9 million increase in Adjusted Net Loss was mainly due to (i) a decrease in Adjusted EBITDA by $7.3 million; (ii) an increase in interest expense and finance cost, net by $2.0 million; (iii) an increase in share-based compensation expense of $0.2 million; and (iv) an increase in amortization for deferred drydock and special survey costs of $0.1 million. This overall decrease of $9.6 million was partially mitigated by (i) a decrease in depreciation and amortization by $2.2 million; and (ii) a decrease in income tax expense of $1.5 million.

Net income of Navios Logistics was $1.8 million for the three month period ended September 30, 2017 as compared to $2.8 million for the same period in 2016.

Adjusted EBITDA of Navios Holdings for the three months ended September 30, 2017 decreased by $7.3 million to $31.2 million as compared to $38.5 million for the same period of 2016. The $7.3 million decrease in Adjusted EBITDA was primarily due to (i) a $15.0 million increase in time charter, voyage and logistics business expenses; (ii) a $6.5 million decrease in equity in net earnings from affiliated companies; and (iii) a $0.3 million increase in general and administrative expenses (excluding share-based compensation expenses). This overall decrease of $21.8 million was partially mitigated by (i) a $7.5 million increase in revenue; (ii) a $4.8 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $1.9 million decrease in other expense, net; and (iv) a $0.3 million decrease in net income attributable to noncontrolling interest.

EBITDA of Navios Logistics was $18.2 million for the three month period ended September 30, 2017, as compared to $19.1 million for the same period in 2016.

Nine Months Ended September 30, 2017 and 2016 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The information for the nine month period ended September 30, 2017 and 2016 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

           
    Nine Month Period
Ended
  Nine Month Period
Ended
 
     September 30,    September 30,  
    2017   2016  
    (unaudited)   (unaudited)  
Revenue   $ 334,519     $ 320,307    
Net Loss   $ (114,309 )   $ (61,384 )  
Adjusted Net Loss   $ (95,391 ) (1 ) $ (78,486 ) (2 )
Net cash provided by operating activities   $ 36,414     $ 42,277    
EBITDA   $ 61,144     $ 122,867    
Adjusted EBITDA   $ 80,062   (1 ) $ 100,072   (2 )
Basic Loss per Share   $ (1.04 )   $ (0.69 )  
Adjusted Basic Loss per share   $ (0.89 ) (1 ) $ (0.85 ) (2 )
                       


(1)     Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share for the nine months ended September 30, 2017 exclude (i) a $14.2 million impairment loss relating to the sale of Navios Ionian and Navios Horizon; and (ii) $4.7 million non-cash impairment losses relating to our affiliates. Adjusted Basic Loss per Share for the nine months ended September 30, 2017 also excludes a gain of $1.1 million following the completion of the Series G and H Exchange Program and the conversion of accrued dividend of private preferred stock to common stock.
       
(2)     Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss Per Share for the nine months ended September 30, 2016 exclude (i) a $16.0 million gain on bond extinguishment (ii) a $14.9 million compensation from the early redelivery of a vessel from its charterer and (iii) an $8.0 million loss relating to our share in Navios Partners’ impairment losses. Adjusted Net Loss and Adjusted Basic Loss per Share for the nine months ended September 30, 2016 exclude also (i) a $13.0 million write-off of intangible assets due to the early redelivery of a charter-in vessel and (ii) a $7.3 million income from the write-off of an intangible liability due to the early redelivery of the same vessel.
       

 Revenue from dry bulk vessel operations for the nine months ended September 30, 2017 was $171.8 million as compared to $142.9 million for the same period during 2016. The increase in dry bulk revenue was mainly attributable to (i) the increase in TCE per day by 9.1% to $8,836 per day in the nine month period ended September 30, 2017 as compared to $8,102 per day in the same period in 2016; and (ii) an increase in available days of our fleet by 1,191 days, mainly due to an increase in long-term charter-in fleet available days.

Revenue from the logistics business was $162.8 million for the nine months ended September 30, 2017 as compared to $177.4 million for the same period in 2016. The decrease was mainly attributable to (i) an $18.0 million decrease in revenue from barge business mainly due to the expiration of certain iron ore transportation contracts; and (ii) a $5.9 million decrease in revenue from the cabotage business mainly due to a decrease in operating days of the cabotage fleet. The overall decrease was partially mitigated by (i) a $5.5 million increase in revenue due to an increase in tariffs in the dry port terminal business and the commencement of operations at the new iron ore terminal; and (ii) a $3.8 million increase in sales of products mainly due to an increase in the Paraguayan liquid port’s volume of products sold.

Net Loss of Navios Holdings was $114.3 million and $61.4 million for the nine months ended September 30, 2017 and 2016, respectively.  Net Loss was affected by the items described in the table above. Excluding these items, Adjusted Net Loss of Navios Holdings for the nine months ended September 30, 2017 was $95.4 million as compared to $78.5 million for the same period of 2016. The $16.9 million increase in Adjusted Net Loss was mainly due to (i) a decrease in Adjusted EBITDA of $20.0 million; (ii) an increase in interest expense and finance cost, net of $2.5 million; (iii) an increase of $0.9 million in amortization for deferred drydock and special survey costs; and (iv) an increase of $0.7 million in share-based compensation expense. This overall increase of $24.1 million was partially mitigated by (i) a decrease in depreciation and amortization of $4.8 million; and (ii) a decrease in income tax expense of $2.4 million.

Net Income of Navios Logistics was $3.3 million for the nine month period ended September 30, 2017, as compared to $15.8 million for the same period in 2016.

Adjusted EBITDA of Navios Holdings for the nine month period ended September 30, 2017 decreased by $20.0 million to $80.1 million as compared to $100.1 million for the same period of 2016. The $20.0 million decrease in Adjusted EBITDA was primarily due to (i) a $37.3 million increase in time charter, voyage and logistics business expenses; and (ii) a $16.7 million decrease in equity in net earnings from affiliated companies. This overall decrease of $54.0 million was partially mitigated by (i) a $14.2 million increase in revenue; (ii) a $8.3 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $4.5 million decrease in net income attributable to the noncontrolling interest; (iv) a $3.7 million decrease in other expense, net; (v) a $1.7 million gain on debt extinguishment; (vi) a $1.1 million gain on sale of assets; and (vii) a $0.5 million decrease in general and administrative expenses (excluding share-based compensation expenses).

EBITDA of Navios Logistics was $47.5 million for the nine month period ended September 30, 2017, as compared to $60.9 million for the same period in 2016.

Fleet Summary Data:

The following table reflects certain key indicators indicative of the performance of the Navios Holdings' dry bulk operations (excluding the Navios Logistics fleet) and its fleet performance for the three and nine month periods ended September 30, 2017 and 2016, respectively.

                   
    Three Month   Three Month   Nine Month   Nine Month  
    Period Ended   Period Ended   Period Ended   Period Ended  
    September 30,   September 30,   September 30,   September 30,  
    2017   2016   2017   2016  
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
Available Days (1)     5,794       5,215       17,564       16,373    
Operating Days (2)     5,789       5,206       17,534       16,238    
Fleet Utilization (3)     99.9 %     99.8 %     99.8 %     99.2 %  
Equivalent Vessels (4)     63       57       64       60    
TCE (5)   $ 9,481     $ 9,010     $ 8,836     $ 8,102    

                                                                 

     
(1 Available days for the fleet are total calendar days the vessels were in Navios Holdings' possession for the relevant period after subtracting off-hire days associated with major repairs, drydocking or special surveys. The shipping industry uses available days to measure the number of days in a relevant period during which vessels should be capable of generating revenues.
(2 ) Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.
(3 ) Fleet utilization is the percentage of time that Navios Holdings' vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels.
(4 ) Equivalent Vessels is defined as the total available days during a relevant period divided by the number of days of this period.
(5 ) TCE is defined as voyage and time charter revenues less voyage expenses during a relevant period divided by the number of available days during the period.
     

Conference Call:
As previously announced, Navios Holdings will host a conference call today, November 21, 2017, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on earnings results for the third quarter and nine months ended September 30, 2017.

A supplemental slide presentation will be available on the Navios Holdings website at www.navios.com under the "Investors" section by 8:00 am ET on the day of the call.

Conference Call details:

Call Date/Time: Tuesday, November 21, 2017, at 8:30 am ET
Call Title: Navios Holdings Q3 2017 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 9253 6633

The conference call replay will be available shortly after the live call and remain available for one week at the following numbers:

US Replay Dial In: +1.800.585.8367
International Replay Dial In: +1.404.537.3406
Conference ID: 9253 6633

This call will be simultaneously Webcast. The Webcast will be available on the Navios Holdings website, www.navios.com, under the "Investors" section. The Webcast will be archived and available at the same Web address for two weeks following the call.

About Navios Maritime Holdings Inc.

Navios Maritime Holdings Inc. (NYSE:NM) is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of dry bulk commodities including iron ore, coal and grain. For more information about Navios Holdings please visit our website: www.navios.com.

About Navios South American Logistics Inc.

Navios South American Logistics Inc. is one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia region river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics serves the storage and marine transportation needs of its petroleum, agricultural and mining customers through its port terminals, river barge and coastal cabotage operations. For more information about Navios Logistics please visit its website: www.navios-logistics.com.

About Navios Maritime Partners L.P.

Navios Maritime Partners L.P. (NYSE:NMM) is a publicly traded master limited partnership which owns and operates container and dry bulk vessels. For more information, please visit its website at www.navios-mlp.com.

About Navios Maritime Acquisition Corporation

Navios Acquisition (NYSE:NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. For more information about Navios Acquisition, please visit its website: www.navios-acquisition.com.

About Navios Maritime Midstream Partners L.P.

Navios Maritime Midstream Partners L.P. (NYSE:NAP) is a publicly traded master limited partnership which owns and operates crude oil tankers under long-term employment contracts. For more information, please visit its website at www.navios-midstream.com.

About Navios Maritime Containers Inc.

Navios Maritime Containers Inc. (N-OTC:NMCI) is a growth vehicle dedicated to the container sector of the maritime industry. For more information, please visit its website at www.navios-containers.com.

Forward Looking Statements - Safe Harbor

This press release and our earnings call contain and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including cash flow generation for the remainder of 2017 and 2018, future contracted revenues, potential capital gains, our ability to take advantage of dislocation in the market and any market recovery, and Navios Holdings' growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Holdings at the time these statements were made. Although Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Holdings. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry cargo shipping sector in general and the demand for our Panamax, Capesize and Ultra Handymax vessels in particular, fluctuations in charter rates for dry cargo carriers vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance, and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions, competitive factors in the market in which Navios Holdings operates, the value of our publicly traded subsidiaries, risks associated with operations outside the United States; Vale’s obligations under the Vale port contract; and other factors listed from time to time in Navios Holdings' filings with the Securities and Exchange Commission, including its Forms 20-F and Forms 6-K. Navios Holdings expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Holdings' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Holdings makes no prediction or statement about the performance of its common stock.

Contact:

Navios Maritime Holdings Inc.
+1.212.906.8643
investors@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 Ended
 September 30,
2017
    Three Month
 Period Ended
 September 30,
2016
    Nine Month
 Period Ended
 September 30,
2017
    Nine Month
Period Ended
September 30,
2016
 
 
          (unaudited)     (unaudited)     (unaudited)     (unaudited)    
Revenue           $ 120,555       $ 113,087     $ 334,519       $ 320,307  
Administrative fee revenue from
  affiliates
            6,284         5,472       16,942         16,417  
Time charter, voyage and logistics
  business expenses
            (56,824 )       (41,846 )     (161,628 )       (124,322 )
Direct vessel expenses(1)             (28,739 )       (33,269 )     (90,566 )       (98,028 )
General and administrative expenses
  incurred on behalf of affiliates
            (6,284 )       (5,472 )     (16,942 )       (16,417 )
General and administrative expenses(2)             (6,711 )       (6,182 )     (19,203 )       (19,012 )
Depreciation and amortization             (26,179 )       (41,432 )     (77,893 )       (88,391 )
Interest expense and finance cost, net             (28,825 )       (26,809 )     (83,812 )       (81,257 )
Impairment loss on sale of vessel                           (14,239 )        
Gain on debt/bond extinguishment                     15,956       1,715         15,956  
Other (expense)/income, net             (1,912 )       (3,844 )     (4,790 )       5,290  
Loss before equity in net earnings of
affiliated companies
            (28,635 )       (24,339 )     (115,897 )       (69,457 )
Equity in net earnings/(loss) of
  affiliated companies
            901         (735 )     2,208         15,641  
Loss before taxes           $ (27,734 )     $ (25,074 )   $ (113,689 )     $ (53,816 )
Income tax benefit/(expense)             69         (1,413 )     562         (1,837  
Net loss             (27,665 )       (26,487 )     (113,127 )       (55,653 )
Less: Net income attributable to the
  noncontrolling interest
            (667 )       (1,016 )     (1,182 )       (5,731 )
Net loss attributable to Navios
Holdings common stockholders
          $ (28,332 )     $ (27,503 )   $ (114,309 )     $ (61,384 )
Loss attributable to Navios
  Holdings
common stockholders,
  basic and diluted
          $ (30,272 )     $ (31,490 )   $ (121,049 )     $ (73,312 )
Basic and diluted net losses per
  share attributable to Navios
  Holdings common stockholders
          $ (0.26 )     $ (0.30 )   $ (1.04 )     $ (0.69 )
Weighted average number of
  shares, basic and diluted
            117,535,234         106,423,653       116,260,640         106,157,410  
 
  1. Includes expenses of Navios Logistics of $18.4 million and $21.0 million for the three months ended September 30, 2017 and 2016, respectively and $55.0 million and $59.1 million for the nine months ended September 30, 2017 and 2016, respectively.
  2. Includes expenses of Navios Logistics of $4.0 million and $3.4 million for the three months ended September 30, 2017 and 2016, respectively and $11.7 million and $10.3 million for the nine months ended September 30, 2017 and 2016, respectively.

        
NAVIOS MARITIME HOLDINGS INC.

Other Financial Data

                         
          September 30,
2017
    December 31,
2016
 
          (unaudited)     (unaudited)  
ASSETS                         
Cash and cash equivalents, including restricted cash           $ 119,238      $ 141,378  
Other current assets             113,627       131,762  
Deposits for vessels, port terminals and other fixed assets             29,271       136,891  
Vessels, port terminal and other fixed assets, net             1,863,673       1,821,101  
Other non-current assets             252,867       234,612  
Goodwill and other intangibles             281,931       287,151  
Total assets           $ 2,660,607     $ 2,752,895  
                         
       
LIABILITIES AND EQUITY                        
Current liabilities, including current portion of long-term debt, net             228,340       251,783  
Senior and ship mortgage notes, net             1,299,479       1,296,537  
Long-term debt, net of current portion             310,556       324,731  
Other non-current liabilities             129,097       76,291  
Total stockholders’ equity             693,135       803,553  
Total liabilities and stockholders’ equity           $ 2,660,607     $ 2,752,895  
                         

Disclosure of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share are “non-U.S. GAAP financial measures” and should not be used in isolation or considered substitutes for net income/ (loss), cash flow from operating activities and other operations or cash flow statement data prepared in accordance with generally accepted accounting principles in the United States.

EBITDA represents net (loss)/income attributable to Navios Holdings' common stockholders before interest and finance costs, before depreciation and amortization, before income taxes and before stock-based compensation. Adjusted EBITDA represents EBITDA, excluding certain items as described under “Earnings Highlights”. Adjusted Loss and Adjusted Basic Loss per Share represent Net Loss and Basic Loss per Share, excluding certain items as described under “Earnings Highlights”. We use EBITDA and Adjusted EBITDA as liquidity measures and reconcile EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of (i) net increase/(decrease) in operating assets, (ii) net (increase)/decrease in operating liabilities, (iii) net interest cost, (iv) deferred finance charges and gains/(losses) on bond and debt extinguishment, (v) (provision)/recovery for losses on accounts receivable, (vi) equity in affiliates, net of dividends received, (vii) payments for drydock and special survey costs, (viii) noncontrolling interest, (ix) gain/ (loss) on sale of assets/ subsidiaries, (x) unrealized (loss)/gain on derivatives, and (xi) loss on sale and reclassification to earnings of available-for-sale securities and impairment charges. Navios Holdings believes that EBITDA and Adjusted EBITDA are a basis upon which liquidity can be assessed and represents useful information to investors regarding Navios Holdings’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. Navios Holdings also believes that EBITDA and Adjusted EBITDA are used (i) by prospective and current lessors as well as potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

EBITDA and Adjusted EBITDA are presented to provide additional information with respect to the ability of Navios Holdings to satisfy its respective obligations, including debt service, capital expenditures, working capital requirements and pay dividends. While EBITDA and Adjusted EBITDA are frequently used as measures of operating results and the ability to meet debt service requirements, the definitions of EBITDA and Adjusted EBITDA used here may not be comparable to those used by other companies due to differences in methods of calculation.

EBITDA and Adjusted EBITDA have limitations as an analytical tool, and therefore, should not be considered in isolation or as a substitute for the analysis of Navios Holdings’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; (ii) EBITDA and Adjusted EBITDA do not reflect the amounts necessary to service interest or principal payments on our debt and other financing arrangements; and (iii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, among others, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Holdings’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

Navios Logistics EBITDA is used to measure its operating performance.

The following tables provide a reconciliation of EBITDA and Adjusted EBITDA of Navios Holdings (including Navios Logistics) and EBITDA of Navios Logistics on a stand-alone basis:


Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations

       
  September 30,   September 30,
Three Months Ended 2017   2016
(in thousands of U.S. dollars) (unaudited)    (unaudited)
           
Net cash (used in)/provided by operating activities $   (12,689 )    $   2,140  
Net increase in operating assets     8,525         8,247  
Net decrease/(increase) in operating liabilities     4,916         (3,381 )
Net interest cost     28,826         26,809  
Deferred finance charges     (1,440 )       (1,359 )
Recovery/(provision) for losses on accounts receivable     300         (453 )
Equity in affiliates, net of dividends received     427         (4,857 )
Payments for drydock and special survey costs     2,970         4,303  
Noncontrolling interest     (667 )       (1,016 )
Other gain on assets     24        —  
Gain on bond extinguishment    —         15,956  
EBITDA $   31,192      $   46,389  
Gain on bond extinguishment    —         (15,956 )
Other items from affiliates    —         8,032  
Adjusted EBITDA $   31,192      $   38,465  
   


   
  Three Month
Period Ended

September 30, 2017
  Three Month
Period Ended
September 30, 2016
  (unaudited)   (unaudited)
Net cash (used in)/provided by operating activities   (12,689 )   $   2,140  
Net cash provided by/(used in) investing activities $   2,891     $   (17,090 )
Net cash (used in)/provided by financing activities $   (6,212 )   $   32,976  
               

Navios Logistics EBITDA Reconciliation to Net Income

       
  September 30,   September 30,
Three Months Ended 2017   2016
(in thousands of U.S. dollars) (unaudited)   (unaudited)
Net income $ 1,844     $ 2,807
Depreciation and amortization   7,156       7,679
Amortization of deferred drydock and special survey costs   1,867       1,680
Interest expense and finance cost, net    7,446       5,638
Income tax (benefit)/expense   (135 )     1,341
EBITDA $  18,178     $ 19,145
             


Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations

       
  September 30,    September 30,
Nine Months Ended 2017   2016
(in thousands of U.S. dollars) (unaudited)    (unaudited)
           
Net cash provided by operating activities $   36,414      $   42,277  
Net (decrease)/increase in operating assets     (33,790 )       20,023  
Net increase in operating liabilities     (12,103 )       (36,537 )
Net interest cost     83,812         81,257  
Deferred finance charges     (4,294 )       (4,054 )
Recovery/(provision) for losses on accounts receivable     276         (602 )
Equity in affiliates, net of dividends received     (6,564 )       3,248  
Payments for drydock and special survey costs     10,024         7,375  
Noncontrolling interest     (1,182 )       (5,731 )
Other gain on assets     1,075        —  
Gain on debt/bond extinguishment     1,715         15,956  
Impairment loss on sale of vessel     (14,239 )      —  
Loss on sale and reclassification to earnings of
available for sale securities
   —         (345 )
EBITDA $   61,144      $   122,867  
Impairment loss on sale of vessels     14,239        —  
Gain on bond extinguishment    —         (15,956 )
Other items from affiliates     4,679         8,032  
Compensation from early redelivery of a vessel from
its charterer
   —         (14,871 )
Adjusted EBITDA $   80,062      $   100,072  
   


   
  Nine Month
Period Ended
September 30, 2017
  Nine Month
Period Ended
September 30, 2016
  (unaudited)   (unaudited)
Net cash provided by operating activities   36,414     $   42,277  
Net cash used in investing activities $   (32,987 )   $  (129,409 )
Net cash (used in)/provided by financing activities $   (25,221 )   $   82,275  
               

Navios Logistics EBITDA Reconciliation to Net Income

       
  September 30,   September 30,
Nine Months Ended 2017   2016
(in thousands of U.S. dollars) (unaudited)   (unaudited)
Net income $ 3,267     $ 15,843  
Depreciation and amortization    19,624       20,740  
Amortization of deferred drydock and special survey costs   5,874       5,065  
Interest expense and finance cost, net    19,522       17,671  
Income tax (benefit)/expense   (763 )     1,623  
EBITDA $ 47,524     $ 60,942  
               


EXHIBIT II

Owned Vessels

               
Vessel Name   Vessel Type   Year Built   Deadweight
(in metric tons)
Navios Serenity   Handysize   2011   34,690
Navios Herakles   Ultra Handymax   2001   52,061
Navios Achilles   Ultra Handymax   2001   52,063
Navios Vector   Ultra Handymax   2002   50,296
Navios Meridian   Ultra Handymax   2002   50,316
Navios Mercator   Ultra Handymax   2002   53,553
Navios Arc   Ultra Handymax   2003   53,514
Navios Hios   Ultra Handymax   2003   55,180
Navios Kypros   Ultra Handymax   2003   55,222
Navios Astra   Ultra Handymax   2006   53,468
Navios Ulysses   Ultra Handymax   2007   55,728
Navios Celestial   Ultra Handymax   2009   58,063
Navios Vega   Ultra Handymax   2009   58,792
Navios Magellan   Panamax   2000   74,333
Navios Star   Panamax   2002   76,662
Navios Amitie   Panamax   2005   75,395
Navios Northern Star   Panamax   2005   75,395
Navios Taurus   Panamax   2005   76,596
Navios Asteriks   Panamax   2005   76,801
Navios Galileo   Panamax   2006   76,596
N Amalthia   Panamax   2006   75,318
N Bonanza   Panamax   2006   76,596
Navios Avior   Panamax   2012   81,355
Navios Centaurus   Panamax   2012   81,472
Navios Sphera   Panamax   2016   84,872
Navios Stellar   Capesize   2009   169,001
Navios Bonavis   Capesize   2009   180,022
Navios Happiness   Capesize   2009   180,022
Navios Phoenix   Capesize   2009   180,242
Navios Lumen   Capesize   2009   180,661
Navios Antares   Capesize   2010   169,059
Navios Etoile   Capesize   2010   179,234
Navios Bonheur   Capesize   2010   179,259
Navios Altamira   Capesize   2011   179,165
Navios Azimuth   Capesize   2011   179,169
Navios Ray   Capesize   2012   179,515
Navios Gem   Capesize   2014   181,336
Navios Mars   Capesize   2016   181,259
               
               

Long term Chartered-in Fleet in Operation 

   
Vessel Name   Vessel Type   Year
Built
  Deadweight
(in metric tons)
  Purchase
Option(1)
 
Navios Lyra   Handysize   2012   34,718   Yes (2)  
Navios Primavera   Ultra Handymax   2007   53,464   Yes  
Mercury Ocean   Ultra Handymax   2008   53,452   No  
Kouju Lily   Ultra Handymax   2011   58,872   No  
Navios Oriana   Ultra Handymax   2012   61,442   Yes  
Navios Mercury   Ultra Handymax   2013   61,393   Yes  
Navios Venus   Ultra Handymax   2015   61,339   Yes  
Osmarine   Panamax   2006   76,000   No  
Navios Aldebaran   Panamax   2008   76,500   Yes  
KM Imabari   Panamax   2009   76,619   No  
Navios Marco Polo   Panamax   2011   80,647   Yes  
Navios Southern Star   Panamax   2013   82,224   Yes  
Sea Victory   Panamax   2014   77,095   Yes  
Navios Sky   Panamax   2015   82,056   Yes  
Navios Amber   Panamax   2015   80,994   Yes  
Navios Coral   Panamax   2016   84,904   Yes  
Navios Dolphin   Panamax   2017   81,630   Yes  
Navios Citrine   Panamax   2017   81,626   Yes  
Equator Prosper   Capesize   2000   170,000   No  
Pacific Explorer   Capesize   2007   177,000   No  
King Ore   Capesize   2010   176,800   Yes  
Navios Koyo   Capesize   2011   181,415   Yes  
Navios Obeliks   Capesize   2012   181,415   Yes  
Dream Coral   Capesize   2015   181,249   Yes  
Dream Canary   Capesize   2015   180,528   Yes  
Navios Felix   Capesize   2016   181,221   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.
   

 

Primary Logo

Source: Navios Maritime Holdings, Inc.