Navios Maritime Holdings Inc. Reports Financial Results for the First Quarter Ended March 31, 2019
$140.3 million revenue for Q1 2019$18.3 million net cash from operating activities for Q1 2019$68.5 million Adjusted EBITDA for Q1 2019- 7.375% Senior Mortgage Notes –
$35.5 million buy-back - 11.25% Senior Secured Notes – collateral substitution
- Completed Exchange Offer
- Owned-fleet renewal – improved average age by 20%
- Positioned to capture market recovery; 8,201 days of market exposure
HIGHLIGHTS – RECENT DEVELOPMENTS
Debt Updates
During
In
In
Completion of Tender Offer for the Company’s Preferred Stock
As of
Fleet Update
From the beginning of 2018 through 2019 YTD,
In
On
In April and
As of
The above figures do not include the fleets of
Exhibit II provides certain details of the Core Fleet of
Earnings Highlights
EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Holdings’ results calculated in accordance with U.S. GAAP.
See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share of
As of
First Quarter 2019 and 2018 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The first quarter 2019 and 2018 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
Three Month Period Ended |
Three Month Period Ended |
Three Month Period Ended |
||||||||
March 31, | March 31, 2019 | March 31, | ||||||||
2019 | Excluding Navios Containers |
2018 | ||||||||
(unaudited) |
(unaudited) | (unaudited) | ||||||||
Revenue | $ | 140,280 | $ | 108,448 | $ | 116,882 | ||||
Net Loss attributable to Navios Holdings’ common stockholders | $ | (5,304) | $ | (5,294) | $ | (40,857) | ||||
Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders | $ | 227 | (1) | $ | 237 | $ | (34,142) | (3) | ||
Net cash provided by operating activities | $ | 18,323 | $ | 18,360 | $ | 17,806 | ||||
EBITDA | $ | 63,002 | $ | 50,724 | $ | 21,383 | ||||
Adjusted EBITDA | $ | 68,533 | (1) | $ | 56,255 | $ | 28,098 | (3) | ||
Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per Share(4) | $ | 1.32 | $ | 1.33 | $ | (3.53) | ||||
Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share(4) | $ | (0.19) | (2) | $ | (0.19) | $ | (2.98) | (3) |
(1) | Adjusted EBITDA and Adjusted Net Income attributable to Navios Holdings’ common stockholders for the three months ended March 31, 2019 exclude $5.5 million of impairment losses related to the sale of one drybulk vessel. |
(2) | Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share for the three months ended March 31, 2019 exclude the item referred in footnote (1) above as well as a gain of $24.0 million related to the tender offer for the Company‘s preferred stock discussed under “Highlights - Recent Developments - Completion of Tender Offer for the Company’s Preferred Stock”. |
(3) | Adjusted EBITDA, Adjusted Net Loss attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share for the three months ended March 31, 2018 exclude $6.7 million of impairment losses related to the sale of one drybulk vessel. |
(4) | Basic and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per Share post reverse stock split adjusted for all periods presented. |
Revenue from dry bulk vessel operations for the three months ended
Revenue from the logistics business was
Revenue of Navios Containers for the three months ended
Net Loss attributable to Navios Holdings’ common stockholders was
Net Income of Navios Logistics, on a standalone basis, was
Net Loss of Navios Containers, on a standalone basis, was
Adjusted EBITDA of
EBITDA of Navios Logistics, on a standalone basis, was
EBITDA of Navios Containers, on a standalone basis, was
Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of
Three Month | Three Month | ||||
Period Ended | Period Ended | ||||
March 31, | March 31, | ||||
2019 | 2018 | ||||
(Unaudited) | (Unaudited) | ||||
Available Days (1) | 5,337 | 5,554 | |||
Operating Days (2) | 5,313 | 5,517 | |||
Fleet Utilization (3) | 99.5% | 99.3% | |||
Equivalent Vessels (4) | 59 | 62 | |||
TCE (5) | $ | 9,622 | $ | 10,983 |
(1) | Available days for the fleet are total calendar days the vessels were in Navios Holdings' possession for the relevant period after subtracting off-hire days associated with scheduled repairs, drydocking or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a relevant period during which vessels should be capable of generating revenues. |
(2) | Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues. |
(3) | Fleet utilization is the percentage of time that Navios Holdings' vessels were available for generating revenue, and is determined by dividing the number of operating days during a relevant period by the number of available days during that period. The shipping industry uses fleet utilization to measure a company's efficiency in finding suitable employment for its vessels. |
(4) | Equivalent Vessels is defined as the total available days during a relevant period divided by the number of days of this period. |
(5) | TCE is defined as voyage and time charter revenues less voyage expenses during a relevant period divided by the number of available days during the period. |
Conference Call:
As previously announced,
A supplemental slide presentation will be available on the
Conference Call details:
Call Date/Time: Tuesday, May 28, 2019 at 8:30 am ET
Call Title: Navios Holdings Q1 2019 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 334 8718
The conference call replay will be available shortly after the live call and remain available for one week at the following numbers:
US Replay Dial In: +1.800.585.8367
International Replay Dial In: +1.404.537.3406
Conference ID: 334 8718
This call will be simultaneously Webcast. The Webcast will be available on the
About
About
About
About
About
Navios Acquisition (NYSE: NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. For more information about Navios Acquisition, please visit its website: www.navios-acquisition.com.
Forward Looking Statements - Safe Harbor
This press release and our earnings call contain and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including expected cash flow generation, future contracted revenues, potential capital gains, our ability to take advantage of dislocation in the market and any market recovery, and
Contact:
+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 March 31, 2019 |
Three Month Period Ended March 31, 2018 |
||||
(unaudited) | (unaudited) | ||||
Revenue | $ | 140,280 | $ | 116,882 | |
Administrative fee revenue from affiliates | 6,464 | 7,005 | |||
Time charter, voyage and logistics business expenses | (49,644) | (51,495) | |||
Direct vessel expenses(1) | (39,436) | (24,264) | |||
General and administrative expenses incurred on behalf of affiliates | (6,464) | (7,005) | |||
General and administrative expenses(2) | (10,026) | (6,927) | |||
Depreciation and amortization | (29,785) | (26,066) | |||
Interest expense and finance cost, net | (34,397) | (31,810) | |||
Impairment losses on sale of vessels | (5,531) | (6,715) | |||
Gain on bond extinguishment | 15,662 | — | |||
Other income/(expense), net | 5,389 | (4,819) | |||
Loss before equity in net earnings of affiliated companies | (7,488) | (35,214) | |||
Equity in net earnings/(losses) of affiliated companies | 4,277 | (6,464) | |||
Loss before taxes | $ | (3,211) | $ | (41,678) | |
Income tax (expense)/benefit | (405) | 442 | |||
Net loss | (3,616) | (41,236) | |||
Less: Net (income)/ loss attributable to the noncontrolling interest | (1,688) | 379 | |||
Net loss attributable to Navios Holdings’ common stockholders |
$ | (5,304) | $ | (40,857) | |
Income/(loss) attributable to Navios Holdings’ common stockholders, basic | $ | 16,190 | $ | (43,406) | |
Income/(loss) attributable to Navios Holdings’ common stockholders, diluted | $ | 16,363 | $ | (43,406) | |
Basic earnings/(loss) per share attributable to Navios Holdings common stockholders | $ | 1.32 | $ | (3.53) | |
Weighted average number of shares, basic | 12,219,884 | 12,297,560 | |||
Diluted earnings/(loss) per share attributable to Navios Holdings common stockholders | $ | 1.22 | $ | (3.53) | |
Weighted average number of shares, diluted | 13,377,117 | 12,297,560 |
(1) | Includes expenses of Navios Logistics of $12.6 million and $14.8 million for the three month period ended March 31, 2019 and 2018, respectively. Also includes expenses of Navios Containers of $15.9 million for the three month period ended March 31, 2019. |
(2) | Includes expenses of Navios Logistics of $3.8 million and $3.9 million for the three month period ended March 31, 2019 and 2018, respectively. Also includes expenses of Navios Containers of $2.5 million for the three month period ended March 31, 2019. |
NAVIOS MARITIME HOLDINGS INC. | |||||
Other Financial Data | |||||
March 31, 2019 |
December 31, 2018 |
||||
(unaudited) | (unaudited) | ||||
ASSETS | |||||
Cash and cash equivalents, including restricted cash | $ | 129,358 | $ | 150,774 | |
Vessels, port terminal and other fixed assets, net | 1,867,810 | 1,898,455 | |||
Goodwill and other intangibles | 292,138 | 299,273 | |||
Operating lease assets | 349,100 | — | |||
Other current and non-current assets | 354,774 | 333,994 | |||
Total assets | $ | 2,993,180 | $ | 2,682,496 | |
LIABILITIES AND EQUITY | |||||
Long-term, debt, including current portion | 531,957 | 543,899 | |||
Senior and ship mortgage notes, net | 1,247,052 | 1,272,108 | |||
Operating lease liabilities, current portion | 92,438 | — | |||
Operating lease liabilities, net of current portion | 270,109 | — | |||
Other current and non-current liabilities | 342,764 | 344,809 | |||
Total stockholders’ equity | 508,860 | 521,680 | |||
Total liabilities and stockholders’ equity | $ | 2,993,180 | $ | 2,682,496 | |
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss per Share are “non-U.S. GAAP financial measures” and should not be used in isolation or considered substitutes for net income/(loss), cash flow from operating activities and other operations or cash flow statement data prepared in accordance with generally accepted accounting principles in
EBITDA represents net income/(loss) attributable to
EBITDA and Adjusted EBITDA are presented to provide additional information with respect to the ability of
EBITDA and Adjusted EBITDA have limitations as an analytical tool, and therefore, should not be considered in isolation or as a substitute for the analysis of Navios Holdings’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; (ii) EBITDA and Adjusted EBITDA do not reflect the amounts necessary to service interest or principal payments on our debt and other financing arrangements; and (iii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, among others, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Holdings’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
Navios Logistics EBITDA is used to measure its operating performance.
We present Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders because we believe it assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Our presentation of Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders adjusts net income/(loss) attributable to Navios Holdings’ common stockholders for the items described above under “Earnings Highlights”. The definition of Adjusted Net Income/(Loss) used here may not be comparable to that used by other companies due to differences in methods of calculation.
Adjusted Basic Loss attributable to Navios Holdings’ common stockholders Per Share is defined as Adjusted Loss attributable to Navios Holdings’ common stockholders divided by the weighted average number of shares for each of the periods presented.
The following tables provide a reconciliation of EBITDA and Adjusted EBITDA of
Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations |
|||||
March 31, | March 31, |
||||
Three Months Ended | 2019 | 2018 | |||
(in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||
Net cash provided by operating activities | $ | 18,323 | $ | 17,806 | |
Net increase in operating assets | 7,610 | 3,622 | |||
Net decrease/(increase) in operating liabilities | 13,218 | (21,635) | |||
Net interest cost | 34,397 | 31,810 | |||
Deferred finance charges | (1,857) | (1,642) | |||
Provision for losses on accounts receivable | (576) | (433) | |||
Equity in affiliates, net of dividends received | 3,240 | (6,937) | |||
Payments for drydock and special survey costs | 4,123 | 5,100 | |||
Noncontrolling interest | (1,688) | 379 | |||
Other gain on assets | — | 28 | |||
Impairment losses on sale of vessels | (5,531) | (6,715) | |||
Amortization of operating lease assets | (23,919) | — | |||
Gain on bond extinguishment | 15,662 | — | |||
EBITDA | $ | 63,002 | $ | 21,383 | |
Impairment losses on sale of vessels | 5,531 | 6,715 | |||
Adjusted EBITDA | $ | 68,533 | $ | 28,098 |
Three Month Period Ended (in thousands of U.S. dollars) |
March 31, 2019 |
March 31, 2018 |
|||
(unaudited) | (unaudited) | ||||
Net cash provided by operating activities | $ | 18,323 | $ | 17,806 | |
Net cash used in investing activities | $ | (6,606) | $ | (17,500) | |
Net cash used in financing activities | $ | (33,133) | $ | (12,643) |
Adjusted EBITDA breakdown | |||||
March 31, | March 31, | ||||
Three Months Ended | 2019 | 2018 | |||
(in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||
Adjusted EBITDA from core shipping operations | $ | 29,735 | $ | 17,377 | |
Navios Logistics (including noncontrolling interest) | 22,243 | 17,185 | |||
Navios Containers (including noncontrolling interest) | 12,278 | — | |||
Equity in net earnings/(losses) of affiliated companies | 4,277 | (6,464) | |||
Adjusted EBITDA | $ | 68,533 | $ | 28,098 |
Navios Logistics EBITDA Reconciliation to Net Income/(Loss) | |||||
March 31, | March 31, | ||||
Three Months Ended | 2019 | 2018 | |||
(in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||
Net lncome/(loss) | $ | 5,305 | $ | (1,047) | |
Depreciation and amortization | 7,346 | 7,228 | |||
Amortization of deferred drydock and special survey costs | 1,326 | 1,890 | |||
Interest expense and finance cost, net | 9,838 | 9,245 | |||
Income tax expense/(benefit) | 347 | (510) | |||
EBITDA | $ | 24,162 | $ | 16,806 |
Navios Containers Reconciliation of EBITDA to Cash from Operations | ||
Three Months Ended | March 31, 2019 |
|
(in thousands of U.S. dollars) | (unaudited) |
|
Net cash used in operating activities | $ | (37) |
Net increase in operating assets | 3,865 | |
Net decrease in operating liabilities | 2,018 | |
Net interest cost | 3,553 | |
Deferred finance charges | (59) | |
Payments for drydock and special survey costs | 2,707 | |
EBITDA | $ | 12,047 |
EXHIBIT II | ||||||
Owned Vessels | ||||||
Vessel Name | Vessel Type | Year Built | Deadweight (in metric tons) |
|||
Navios Serenity | Handysize | 2011 | 34,690 | |||
Navios Vector (1) | Ultra Handymax | 2002 | 50,296 | |||
Navios Mercator (1) | Ultra Handymax | 2002 | 53,553 | |||
Navios Arc | Ultra Handymax | 2003 | 53,514 | |||
Navios Hios | Ultra Handymax | 2003 | 55,180 | |||
Navios Kypros | Ultra Handymax | 2003 | 55,222 | |||
Navios Astra | Ultra Handymax | 2006 | 53,468 | |||
Navios Primavera | Ultra Handymax | 2007 | 53,464 | |||
Navios Ulysses | Ultra Handymax | 2007 | 55,728 | |||
Navios Celestial | Ultra Handymax | 2009 | 58,063 | |||
Navios Vega | Ultra Handymax | 2009 | 58,792 | |||
Navios Star | Panamax | 2002 | 76,662 | |||
Navios Amitie | Panamax | 2005 | 75,395 | |||
Navios Northern Star | Panamax | 2005 | 75,395 | |||
Navios Taurus | Panamax | 2005 | 76,596 | |||
Navios Asteriks | Panamax | 2005 | 76,801 | |||
N Amalthia | Panamax | 2006 | 75,318 | |||
Navios Galileo | Panamax | 2006 | 76,596 | |||
N Bonanza | Panamax | 2006 | 76,596 | |||
Navios Avior | Panamax | 2012 | 81,355 | |||
Navios Centaurus | Panamax | 2012 | 81,472 | |||
Navios Stellar | Capesize | 2009 | 169,001 | |||
Navios Bonavis | Capesize | 2009 | 180,022 | |||
Navios Happiness | Capesize | 2009 | 180,022 | |||
Navios Phoenix | Capesize | 2009 | 180,242 | |||
Navios Lumen | Capesize | 2009 | 180,661 | |||
Navios Antares | Capesize | 2010 | 169,059 | |||
Navios Etoile | Capesize | 2010 | 179,234 | |||
Navios Bonheur | Capesize | 2010 | 179,259 | |||
Navios Altamira | Capesize | 2011 | 179,165 | |||
Navios Azimuth | Capesize | 2011 | 179,169 | |||
Navios Ray | Capesize | 2012 | 179,515 | |||
Navios Gem | Capesize | 2014 | 181,336 | |||
(1) Agreed to be sold
Long term Chartered-in Fleet in Operation | ||||||||
Vessel Name | Vessel Type | Year Built |
Deadweight (in metric tons) |
Purchase Option(1) |
||||
Navios Lyra | Handysize | 2012 | 34,718 | Yes (2) | ||||
Navios Mercury | Ultra Handymax | 2013 | 61,393 | Yes | ||||
Navios Venus | Ultra Handymax | 2015 | 61,339 | Yes | ||||
Navios Marco Polo | Panamax | 2011 | 80,647 | Yes | ||||
Navios Southern Star | Panamax | 2013 | 82,224 | Yes | ||||
Sea Victory (TBN Navios Victory) | Panamax | 2014 | 77,095 | Yes (4) | ||||
Elsa S | Panamax | 2015 | 80,954 | No | ||||
Navios Amber | Panamax | 2015 | 80,994 | Yes | ||||
Navios Sky | Panamax | 2015 | 82,056 | Yes | ||||
Navios Coral | Panamax | 2016 | 84,904 | Yes | ||||
Navios Citrine | Panamax | 2017 | 81,626 | Yes | ||||
Navios Dolphin | Panamax | 2017 | 81,630 | Yes | ||||
Mont Blanc Hawk | Panamax | 2017 | 81,638 | No | ||||
Cassiopeia Ocean | Panamax | 2018 | 82,069 | No | ||||
Navios Gemini | Panamax | 2018 | 81,704 | No (3) | ||||
Navios Horizon I | Panamax | 2019 | 81,692 | No (3) | ||||
King Ore | Capesize | 2010 | 176,800 | Yes | ||||
Navios Koyo | Capesize | 2011 | 181,415 | Yes | ||||
Navios Obeliks | Capesize | 2012 | 181,415 | Yes | ||||
Dream Canary | Capesize | 2015 | 180,528 | Yes | ||||
Dream Coral | Capesize | 2015 | 181,249 | Yes | ||||
Navios Felix | Capesize | 2016 | 181,221 | Yes | ||||
Bareboat-in Fleet to be delivered | ||||||||
Vessel Name | Vessel Type | Delivery date | Deadweight (in metric tons) |
Purchase Option(1) |
||||
Navios Herakles I | Panamax | Q3 2019 | 81,000 | Yes | ||||
Navios Felicity I | Panamax | Q4 2019 | 81,000 | Yes | ||||
Navios Uranus | Panamax | Q4 2019 | 81,600 | Yes | ||||
Navios Galaxy II | Panamax | Q1 2020 | 81,600 | Yes | ||||
Navios Magellan II | Panamax | Q2 2020 | 81,000 | Yes |
(1) | Generally, Navios Holdings may exercise its purchase option after three to five years of service. |
(2) | Navios Holdings holds the initial 50% purchase option on the vessel. |
(3) | Navios Holdings has the right of first refusal and profit share on sale of vessel. |
(4) | Agreed to be acquired. |
Source: Navios Maritime Holdings, Inc.