FORM 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF THE

SECURITIES EXCHANGE ACT OF 1934

Dated: August 22, 2013

Commission File No. 001-33311

 

 

NAVIOS MARITIME HOLDINGS INC.

 

 

85 Akti Miaouli Street, Piraeus, Greece 185 38

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):

Yes  ¨            No  x

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):

Yes  ¨             No  x

 

 

 


On August 22, 2013, Navios Maritime Holdings Inc. (“Navios Holdings”) issued a press release announcing the operational and financial results for the three and six months ended June 30, 2013. The press release also announced the declaration of Navios Holdings’ quarterly dividend. A copy of the press release is furnished as Exhibit 99.1 to this Report and is incorporated herein by reference.

On August 20, 2013 the Navios Group, composed of Navios Holdings, Navios Maritime Acquisition Corporation (“Navios Acquisition”) and Navios Maritime Partners L.P. (“Navios Partners”), issued a press release announcing the formation of Navios Europe Inc. (“Navios Europe”) pursuant to a letter of intent signed with HSH Nordbank AG (“HSH”). Navios Europe, which will initially acquire five product tankers and five container vessels from debtors of HSH, is owned 47.5% by Navios Holdings, 47.5% by Navios Acquisition and 5% by Navios Partners. Navios Europe is expected to take ownership of all 10 vessels by November 1, 2013, at which point management of the remaining vessels will be transferred as well. The transaction is subject to a number of conditions, and no assurance can be provided that the transaction will be concluded as contemplated, if at all. A copy of the press release is furnished as Exhibit 99.2 to this Report and is incorporated herein by reference.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

NAVIOS MARITIME HOLDINGS INC.

 

By:  

/s/ Angeliki Frangou

  Angeliki Frangou
  Chief Executive Officer
Date:   August 22, 2013

 


EXHIBIT INDEX

 

Exhibit
No.
   Exhibit
99.1    Press Release, dated August 22, 2013.
99.2   

Press Release, dated August 20, 2013.

EX-99.1

Exhibit 99.1

Navios Maritime Holdings Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2013

MONACO—(Marketwired—Aug 22, 2013)—Navios Maritime Holdings Inc. (NYSE: NM)

 

   

$125.6 million of Revenue and $38.8 million of EBITDA for Q2 2013

 

   

Declared quarterly dividend of $0.06 per share for Q2 2013

 

   

$277.1 million of cash as of Q2 2013

 

   

Fleet coverage of 84.6% for 2013; 21.5% for 2014

 

   

Low cash flow breakeven of $5,365 per open day for 2013

 

   

Strategy of fixing vessels for period charters above cash flow breakeven with market exposure

 

   

Recent charters provide base rate and profit sharing or index plus premium

 

   

Latest capesize fixture for $18,000 to $19,400 gross per day for 95 days

 

   

11% of fleet and 33% of charters fixed since June have market exposure mechanism

 

   

Navios Logistics continued growth

 

   

$17.6 million of EBITDA for Q2 2013

 

   

$4.4 million of Net Income for Q2 2013

 

   

Acquired three convoys for approximately $49 million to support iron ore transportation

 

   

Formed Navios Europe Inc. and arranged technical and commercial management for five of the ten vessels pursuant to a letter of intent with HSH Nordbank AG

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 second quarter and six months ended June 30, 2013.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Holdings stated, “We had a solid quarter and reported $38.8 million of EBITDA. We are maintaining our operating discipline, with moderate leverage of 44.1% and cash of about $277.1 million. As we focus on execution, we continue to return capital to our shareholders through dividend payments and declared a $0.06 dividend for Q2 2013 to record holders on September 18, 2013, representing a yield of almost 4%.”

Angeliki Frangou continued, “Navios Holdings’ adaptable chartering strategy has been formed in context of its conservative business philosophy. While we are subject to the volatility of the industry, we dampen the impact by maintaining low-operating cost and a chartering policy appropriate for the times. At the peak of the market, we entered into long-term fixed rate charters with high quality counter parties. More recently, we have been negotiating period charters that provide a floor above our cash flow breakeven and a mechanism for market exposure so that we can enjoy the upside from a rapidly improving market.”


HIGHLIGHTS — RECENT DEVELOPMENTS

Navios Holdings

Chartering Update

Navios Holdings has recently fixed vessels for period charters maximizing profitability in a rising rate environment:

 

 

Base rate and profit sharing:

 

   

Ultra-Handymax: 100% over base rate of $8,000, basis the average of six Baltic Supramax time charter routes, for a period of MIN 11/MAX 16 months. Current earnings rate $9,514 per day;

 

   

Ultra-Handymax: 70%/30% profit share over base rate of $8,000 basis BSI +8%, for a period MIN 12/MAX 24 months (vessel not redelivered);

 

   

Ultra-Handymax: 100% over base rate of $8,500, basis the average of six Baltic Supramax time charter routes, for a period of MIN 22 /MAX 27 months. Current earnings rate $9,537 per day;

 

   

Ultra-Handymax: 100% over base rate of $8,000, basis the average of six Baltic Supramax time charter routes, for a period of MIN 20 /MAX 25 months (vessel not redelivered).

 

 

Index plus premium:

 

   

Panamax: Charterers pay the weighted average of the Panamax Index routes + 10% for a period of MIN 7 months / MAX until May 5, 2014. Current earnings rate $9,610 per day;

 

   

Panamax: Charterers pay the weighted average of the Panamax Index routes +17% for a period of MIN 12 / MAX 15 months (vessel not redelivered).

 

 

Capesize: $18,000 to $19,400 gross per day for 95 days.

 

 

Capesize: $16,000 net per day for 45 days Pac round trip.

Time Charter Coverage

As of August 19, 2013, Navios Holdings has chartered-out 84.6% and 21.5% of available days for 2013 and 2014, respectively, equivalent to $149.4 million and $61.6 million in revenue, respectively. The average daily charter-out rate for the core fleet is $11,488 and $15,968 for 2013 and 2014, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2013 is $13,357.

The above figures do not include the fleet of Navios South American Logistics Inc. (“Navios Logistics”) and vessels servicing Contracts of Affreightment.

Acquisition of Four Panamax Vessels

On July 9, 2013, Navios Holdings agreed to acquire one 2006-built Panamax vessel and three 2005-built Panamax vessels for an aggregate purchase price of $66.0 million to be financed with debt and cash on hand. During July 2013, the Company paid a 10% deposit of $6.6 million. The four vessels are expected to be delivered during the third quarter of 2013.

Navios Asia LLC (“Navios Asia”)

In May 2013, Navios Holdings formed Navios Asia in partnership with a significant ship owner and operator based in Japan (the “Asian Partner”). Navios Holdings will own 51% and the Asian Partner will own 49%. Navios Asia has agreed to acquire five Panamax and one Kamsarmax vessel for $114.0 million.


Navios Asia expects to take delivery of two of the vessels during the third quarter of 2013. The acquisition of the vessels is expected to be partially financed with bank debt consistent with our existing credit facilities.

Formation of Navios Europe Inc. (“Navios Europe”)

On August 20, 2013, Navios Holdings, Navios Maritime Acquisition Corporation (“Navios Acquisition”) and Navios Maritime Partners L.P. (“Navios Partners”), announced the formation of Navios Europe pursuant to a letter of intent signed with HSH Nordbank AG (“HSH”). Navios Europe, which will initially acquire five product tankers and five container vessels from debtors of HSH, is owned 47.5% by Navios Holdings, 47.5% by Navios Acquisition and 5% by Navios Partners. Navios Europe is expected to take ownership of all 10 vessels by November 1, 2013. The transaction is subject to a number of conditions, and no assurance can be provided that the transaction will be concluded as contemplated, if at all.

In August 2013, Navios Europe arranged technical and commercial management for five out of the ten vessels. To date, the following vessels were delivered:

(1) The Esperanza N, a 2,007 TEU Sub-Panamax Container built in 2008; and

(2) The Harmony N, a 2,824 TEU Sub-Panamax Container built in 2006.

Three tanker vessels are also expected to be delivered through September 2013.

Dividend Policy

On August 19, 2013, the Board of Directors declared a quarterly cash dividend for the second quarter of 2013 of $0.06 per share of common stock. The dividend is payable on September 26, 2013 to stockholders of record as of September 18, 2013. The declaration and payment of any further dividend remain subject to the discretion of the Board and will depend on, among other things, Navios Holdings’ cash requirements after taking into account market opportunities, restrictions under its credit agreements and other debt obligations and such other factors as the Board may deem advisable.

Navios Logistics

On June 26, 2013, Navios Logistics entered into an agreement for the acquisition of three pushboats for a total consideration of $20.3 million. These pushboats are expected to be delivered in the fourth quarter of 2013.

On August 5, 2013, Navios Logistics entered into an agreement for the construction of 36 dry barges for a total consideration of $19.1 million, which are expected to be delivered in the first quarter of 2014. This contract also includes an option exercisable by Navios Logistics for the construction of an additional 36 barges under the same terms and conditions.

Navios Partners

On August 13, 2013, Navios Holdings received $7.3 million from Navios Partners representing the cash dividend for the second quarter of 2013.

Navios Acquisition

On July 3, 2013, Navios Holdings received $3.0 million from Navios Acquisition representing the cash dividend for the first quarter of 2013.

Fleet Profile

Navios Holdings controls a fleet of 60 vessels totaling 5.8 million dwt, of which 40 are owned and 20 are chartered-in under long-term charters (collectively, the “Core Fleet”). Navios Holdings currently operates 47 vessels (16 Capesize, 11 Panamax, 18 Ultra-Handymax and two Handysize) totaling 4.8 million dwt. The current average age of the operating fleet is 6.4 years. Additionally, Navios Holdings has (i) three newbuilding charter-in vessels expected to be delivered at various dates through April 2016; (ii) four owned vessels expected to be delivered in the third quarter of 2013; and (iii) the Navios Asia fleet expected to be delivered in the third and fourth quarter of 2013.

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


Financial Highlights

As of June 30, 2013

 

   

Net Debt to Total Capitalization of 44.1%.

 

   

Cash $277.1 million.

Second Quarter 2013 and 2012 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The second quarter 2013 and 2012 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Net (Loss)/Income and Adjusted Basic (Losses)/Earnings Per Share are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Holdings’ results.

See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA and Adjusted EBITDA of Navios Holdings, on a consolidated basis, and Navios Logistics, and a reconciliation of such measure to the most comparable measure under U.S. GAAP.

 

     Three Month Period     Three Month Period  
     Ended     Ended  
     June 30,     June 30,  
     2013     2012  
     (unaudited)     (unaudited)  

Revenue

   $ 125,572      $ 172,079   

EBITDA

   $ 38,800      $ 61,086   

Adjusted EBITDA (*)

   $ 38,800      $ 60,763   

Net (Loss)/Income

   $ (15,881   $ 5,285   

Adjusted Net (Loss)/Income (*)

   $ (15,881   $ 4,962   

Basic (Losses)/Earnings Per Share

   $ (0.16   $ 0.05   

Adjusted Basic (Losses)/Earnings Per Share(*)

   $ (0.16   $ 0.04   

 

(*) Each of Adjusted EBITDA, Adjusted Net Income and Adjusted Basic Earnings Per Share for the three months ended June 30, 2012 excludes a $0.3 million gain on the sale of the Navios Buena Ventura to Navios Partners.

Revenue from drybulk vessel operations for the three months ended June 30, 2013 was $62.1 million as compared to $98.8 million for the same period during 2012. The decrease in drybulk revenue was mainly attributable to (i) a decrease in the time charter equivalent rate (“TCE”) per day by 46.5% to $10,600 per day in the second quarter of 2013 following the receipt in advance of $175.4 million due to restructuring of credit default insurance, as compared to $19,821 per day in the same period of 2012; (ii) a decrease in available days for owned vessels by 0.4% to 2,730 days in the second quarter of 2013 from 2,742 days in the same period of 2012 following the sale of the Navios Buena Ventura in June 2012; and (iii) a decrease in the long-term charter-in fleet available days by 58 days. This decrease was partially offset by an increase in available days for short-term charter-in fleet by 277 days.


Revenue from the logistics business was $63.5 million for the three months ended June 30, 2013 as compared to $73.3 million for the same period of 2012. This decrease was mainly attributable to a decrease in the Paraguayan liquid port’s volume of products sold.

EBITDA of Navios Holdings for the three months ended June 30, 2013 decreased by $22.3 million to $38.8 million as compared to $61.1 million for the same period of 2012. EBITDA of Navios Holdings for the three month period ended June 30, 2012 has been affected by the item mentioned in the footnote to the table above. Adjusted EBITDA of Navios Holdings for the three months ended June 30, 2013 decreased by $22.0 million to $38.8 million as compared to $60.8 million for the same period of 2012. The $22.0 million decrease in Adjusted EBITDA was primarily due to: (i) a $46.5 million decrease in revenue; (ii) a $3.9 million decrease in equity in net earnings from affiliated companies; and (iii) a $0.8 million increase in net income attributable to the noncontrolling interest. The overall variance of $51.2 million was mitigated by: (i) a decrease in general and administrative expenses of $2.1 million (excluding share-based compensation expenses); (ii) a $7.6 million decrease in time charter, voyage and logistics business expenses; (iii) a $6.9 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); and (iv) a $12.6 million decrease in other expense, net.

EBITDA of Navios Logistics was $17.6 million for the three month period ended June 30, 2013 as compared to $15.4 million for the same period in 2012.

Net loss of Navios Holdings for the three months ended June 30, 2013 was $15.9 million as compared to $5.3 million of income for the same period of 2012. Net income of Navios Holdings for the three month period ended June 30, 2012 has been affected by the item mentioned in the footnote to the table above. Adjusted Net Loss of Navios Holdings for the three month period ended June 30, 2013 was $15.9 million as compared to $5.0 million of income for the same period of 2012. The decrease of Adjusted Net (Loss)/Income by $20.9 million was mainly due to: (i) a decrease in Adjusted EBITDA of $22.0 million; (ii) an increase in interest income/(expense) and finance cost, net of $2.0 million; and (iii) an increase of $0.3 million in amortization for deferred drydock and special survey costs. The decrease was partially offset by: (i) a decrease in depreciation and amortization of $1.6 million; (ii) an increase in income tax benefit of $1.3 million; and (iii) a decrease of $0.5 million in share-based compensation expense.

First Half of 2013 and 2012 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The information for the six month period ended June 30, 2013 and 2012 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Net (Loss)/Income and Adjusted Basic (Losses)/Earnings Per Share are non-U.S. GAAP financial measures, and should not be used in isolation or as substitution for Navios Holdings’ results.

See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA and Adjusted EBITDA of Navios Holdings, on a consolidated basis, and Navios Logistics, and a reconciliation of such measures to the most comparable measures under U.S. GAAP.

 

     Six Month Period     Six Month Period  
     Ended     Ended  
     June 30,     June 30,  
     2013     2012  
     (unaudited)     (unaudited)  

Revenue

   $ 259,409      $ 324,093   

EBITDA

   $ 77,274      $ 123,659   

Adjusted EBITDA (*)

   $ 77,274      $ 123,336   

Net (Loss)/Income

   $ (26,036   $ 14,744   

Adjusted Net (Loss)/Income (*)

   $ (26,036   $ 14,421   

Basic (Losses)/Earnings Per Share

   $ (0.26   $ 0.14   

Adjusted Basic (Losses)/Earnings Per Share (*)

   $ (0.26   $ 0.13   

 

(*) Each of Adjusted EBITDA, Adjusted Net Income and Adjusted Basic Earnings Per Share for the six months ended June 30, 2012 excludes a $0.3 million gain on the sale of the Navios Buena Ventura to Navios Partners.


Revenue from drybulk vessel operations for the six months ended June 30, 2013 was $122.7 million as compared to $200.7 million for the same period during 2012. The decrease in drybulk revenue was mainly attributable to (i) a decrease in the TCE per day by 45.7% to $11,211 per day in first half of 2013 following the receipt in advance of $175.4 million due to restructuring of credit default insurance, as compared to $20,645 per day in the same period of 2012; and (ii) a decrease in long-term charter-in fleet available days by 91 days. This decrease was partially offset by (i) an increase in available days for owned vessels by 2.7% to 5,407 days in the first half of 2013 from 5,266 days in the same period of 2012; and (ii) an increase in the short-term charter-in fleet available days by 379 days.

Revenue from the logistics business was $136.7 million for the six months ended June 30, 2013 as compared to $123.4 million for the same period of 2012. This increase was mainly attributable to an increase in (i) the Paraguayan liquid port’s volume of products sold; (ii) rates in the dry port terminal; (iii) the cabotage fleet’s utilization; and (iv) the revenue from liquid cargo transportation due to higher rates.

EBITDA of Navios Holdings for the six months ended June 30, 2013 decreased by $46.4 million to $77.3 million as compared to $123.7 million for the same period of 2012. EBITDA of Navios Holdings for the six month period ended June 30, 2012 has been affected by the item mentioned in the footnote to the table above. Adjusted EBITDA of Navios Holdings for the six months ended June 30, 2013 decreased by $46.0 million to $77.3 million as compared to $123.3 million for the same period of 2012. The $46.0 million decrease in Adjusted EBITDA was primarily due to: (i) a $64.7 million decrease in revenue; (ii) a $0.7 million increase in time charter, voyage and logistics business expenses; and (iii) a $3.8 million increase in net income attributable to the noncontrolling interest. The overall variance of $69.2 million was mitigated by: (i) a decrease in general and administrative expenses of $5.1 million (excluding share-based compensation expenses); (ii) a $5.5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) an $11.0 million decrease in other expense, net; and (iv) a $1.6 million increase in equity in net earnings from affiliated companies.

EBITDA of Navios Logistics was $31.7 million for the six month period ended June 30, 2013 as compared to $24.1 million for the same period in 2012.

Net loss of Navios Holdings for the six months ended June 30, 2013 was $26.0 million as compared to $14.7 million of income for the same period of 2012. Net income of Navios Holdings for the six month periods ended June 30, 2012 has been affected by the item mentioned in the footnote to the table above. Adjusted Net Loss of Navios Holdings for the six month period ended June 30, 2013 was $26.0 million as compared to $14.4 million of income for the same period of 2012. The decrease of Adjusted Net (Loss)/Income by $40.4 million was mainly due to: (i) a decrease in Adjusted EBITDA of $46.0 million; (ii) an increase in interest income/(expense) and finance cost, net of $2.2 million; and (iii) an increase of $0.6 million in amortization for deferred drydock and special survey costs. The decrease was partially offset by: (i) a decrease in depreciation and amortization of $3.2 million; (ii) an increase in income tax benefit of $4.2 million; and (iii) a decrease of $1.0 million in share-based compensation expense.


Fleet Summary Data:

The following table reflects certain key indicators indicative of the performance of the Navios Holdings’ drybulk operations (excluding the Navios Logistics fleet) and its fleet performance for the three and six month periods ended June 30, 2013 and 2012.

 

     Three Month     Three Month     Six Month     Six Month  
     Period Ended     Period Ended     Period Ended     Period Ended  
     June 30,     June 30,     June 30,     June 30,  
     2013     2012     2013     2012  
     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  

Available Days (1)

     4,586        4,379        8,916        8,487   

Operating Days (2)

     4,449        4,340        8,669        8,402   

Fleet Utilization (3)

     97.0     99.1     97.2     99.0

Equivalent Vessels (4)

     50        48        49        47   

TCE (5)

   $ 10,600      $ 19,821      $ 11,211      $ 20,645   

 

(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, August 22, 2013, at 8:30 am ET, at which time members of senior management will provide highlights and commentary on the financial results of the Company for the second quarter and six months ended June 30, 2013.

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

Conference Call details:

Call Date/Time: Thursday, August 22, 2013, at 8:30 am ET

Call Title: Navios Holdings Inc. Q2 2013 Financial Results Conference Call

US Dial In: +1.877.480.3873

International Dial In: +1.404.665.9927

Conference ID: 1848 0882


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: 1848 0882

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 drybulk 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.navioslogistics.com.

About Navios Maritime Partners L.P.

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

About Navios Maritime Acquisition Corporation

Navios Acquisition (NYSE: NNA) is an owner and operator of tanker vessels focusing in 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 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 drybulk 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.


EXHIBIT I

NAVIOS MARITIME HOLDINGS INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Expressed in thousands of U.S. dollars—except share and per share data)

 

     Three Month
Period Ended
June 30, 2013
    Three Month
Period Ended
June 30, 2012
    Six Month
Period Ended
June 30, 2013
    Six Month
Period Ended
June 30, 2012
 
     (unaudited)     (unaudited)     (unaudited)     (unaudited)  

Revenue

   $ 125,572      $ 172,079      $ 259,409      $ 324,093   

Time charter, voyage and logistics business expenses

     (65,632     (73,215     (135,640     (134,932

Direct vessel expenses

     (26,444     (33,042     (54,139     (59,050

General and administrative expenses

     (9,873     (12,473     (18,835     (25,026

Depreciation and amortization

     (24,233     (25,872     (48,556     (51,706

Interest income/(expense) and finance cost, net

     (27,372     (25,306     (52,730     (50,546

Loss on derivatives

     (87     (76     (260     (202

Gain on sale of assets

     18        323        18        323   

Other income/(expense), net

     9,865        (2,854     6,734        (4,221
  

 

 

   

 

 

   

 

 

   

 

 

 

Loss before equity in net earnings of affiliated companies

     (18,186     (436     (43,999     (1,267

Equity in net earnings of affiliated companies

     4,127        8,058        18,250        16,633   
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss)/income before taxes

   $ (14,059   $ 7,622      $ (25,749   $ 15,366   

Income tax (expense)/benefit

     (128     (1,449     3,572        (595
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/income

     (14,187     6,173        (22,177     14,771   

Less: Net income attributable to the noncontrolling interest

     (1,694     (888     (3,859     (27
  

 

 

   

 

 

   

 

 

   

 

 

 

Net (loss)/income attributable to Navios Holdings common stockholders

   $ (15,881   $ 5,285      $ (26,036   $ 14,744   
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss)/Income attributable to Navios Holdings common stockholders, basic

   $ (16,304   $ 4,862      $ (26,877   $ 13,894   
  

 

 

   

 

 

   

 

 

   

 

 

 

(Loss)/Income attributable to Navios Holdings common stockholders, diluted

   $ (16,304   $ 5,285      $ (26,877   $ 14,744   
  

 

 

   

 

 

   

 

 

   

 

 

 

Basic (loss)/earnings per share attributable to Navios Holdings common stockholders

   $ (0.16   $ 0.05      $ (0.26   $ 0.14   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares, basic

     101,783,378        101,205,545        101,771,451        101,198,855   
  

 

 

   

 

 

   

 

 

   

 

 

 

Diluted (loss)/earnings per share attributable to Navios Holdings common stockholders

   $ (0.16   $ 0.05      $ (0.26   $ 0.13   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares, diluted

     101,783,378        110,993,160        101,771,451        111,014,906   
  

 

 

   

 

 

   

 

 

   

 

 

 

 


NAVIOS MARITIME HOLDINGS INC.

Other Financial Data

 

     June 30,
2013
(unaudited)
     December 31,
2012
(unaudited)
 

ASSETS

     

Cash and cash equivalents

   $ 271,097       $ 257,868   

Restricted cash

     6,011         24,704   

Other current assets

     191,813         187,995   

Vessels, port terminal and other fixed assets, net

     1,721,979         1,746,493   

Other noncurrent assets

     421,020         355,008   

Goodwill and other intangibles

     361,771         369,394   
  

 

 

    

 

 

 

Total assets

   $ 2,973,691       $ 2,941,462   
  

 

 

    

 

 

 

LIABILITIES AND EQUITY

     

Current liabilities, including current portion of long-term debt

     181,294         189,376   

Senior and ship mortgage notes, net of discount and including premium

     1,127,714         1,034,141   

Long-term debt, net of current portion

     276,759         290,976   

Other noncurrent liabilities

     99,419         103,930   

Total stockholders’ equity

     1,288,505         1,323,039   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 2,973,691       $ 2,941,462   
  

 

 

    

 

 

 

 

     Six Month
Period Ended
June 30,

2013
    Six Month
Period Ended
June 30,

2012
 
     (unaudited)     (unaudited)  

Net cash provided by operating activities

   $ 41,351      $ 37,643   

Net cash (used in)/provided by investing activities

     (90,261     14,230   

Net cash provided by/(used in) financing activities

     62,139        (53,874

Disclosure of Non-GAAP Financial Measures

EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, unless otherwise stated. Adjusted EBITDA represents EBITDA excluding items as described under “Financial Highlights.” EBITDA and Adjusted EBITDA are “non-GAAP financial measures” and should not be considered a substitute for net income, 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 or as a measure of profitability or liquidity.

EBITDA is presented to provide additional information with respect to the ability of Navios Holdings to satisfy its respective obligations including debt service, capital expenditures and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

Navios Logistics EBITDA is used to measure company’s operating performance.

The following tables provide a reconciliation of EBITDA and Adjusted EBITDA of Navios Holdings and Navios Logistics, which in the case of Navios Holdings is on a consolidated basis:


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

 

Three Months Ended    June 30,
2013
    June 30,
2012
 
(in thousands of U.S. dollars)    (unaudited)     (unaudited)  

Net cash provided by operating activities

   $ 24,650      $ 7,842   

Net (decrease)/increase in operating assets

     (28,735     23,526   

Net decrease in operating liabilities

     20,110        9,061   

Net interest cost

     27,372        25,306   

Deferred finance charges

     (1,234     (1,500

Provision for losses on accounts receivable

     272        (224

Unrealized loss on FFA derivatives

     88        (135

Equity in affiliates, net of dividends received

     (7,585     (4,661

Payments for drydock and special survey

     5,538        2,436   

Noncontrolling interest

     (1,694     (888

Gain on sale of assets

     18        323   
  

 

 

   

 

 

 

EBITDA

   $ 38,800      $ 61,086   

Gain on sale of assets

     —          (323
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 38,800      $ 60,763   
  

 

 

   

 

 

 

Navios Logistics EBITDA Reconciliation to Net Income

 

Three Months Ended    June 30,
2013
     June 30,
2012
 
(in thousands of U.S. dollars)    (unaudited)      (unaudited)  

Net income attributable to Navios Logistics shareholders

   $ 4,423       $ 2,397   

Depreciation and amortization

     5,779         6,118   

Amortization of deferred drydock and special survey costs

     667         351   

Interest income/(expense) and finance cost, net

     6,657         5,130   

Income taxes

     57         1,377   
  

 

 

    

 

 

 

EBITDA

   $ 17,583       $ 15,373   
  

 

 

    

 

 

 

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

 

Six Months Ended    June 30,
2013
    June 30,
2012
 
(in thousands of U.S. dollars)    (unaudited)     (unaudited)  

Net cash provided by operating activities

   $ 41,351      $ 37,643   

Net (decrease)/increase in operating assets

     (22,083     52,750   

Net decrease/(increase) in operating liabilities

     9,578        (13,886

Net interest cost

     52,730        50,546   

Deferred finance charges

     (2,932     (2,832

Provision for losses on accounts receivable

     (45     (310

Unrealized loss on FFA derivatives

     (69     (252

Equity in affiliates, net of dividends received

     (5,684     (6,905

Payments for drydock and special survey

     8,269        6,609   

Noncontrolling interest

     (3,859     (27

Gain on sale of assets

     18        323   
  

 

 

   

 

 

 

EBITDA

   $ 77,274      $ 123,659   

Gain on sale of assets

     —          (323
  

 

 

   

 

 

 

Adjusted EBITDA

   $ 77,274      $ 123,336   
  

 

 

   

 

 

 


Navios Logistics EBITDA Reconciliation to Net Income

 

Six Months Ended    June 30,
2013
    June 30,
2012
 
(in thousands of U.S. dollars)    (unaudited)     (unaudited)  

Net income attributable to Navios Logistics shareholders

   $ 10,357      $ 8   

Depreciation and amortization

     11,872        12,921   

Amortization of deferred drydock and special survey costs

     1,151        655   

Interest income/(expense) and finance cost, net

     12,038        10,053   

Income taxes

     (3,713     454   
  

 

 

   

 

 

 

EBITDA

   $ 31,705      $ 24,091   
  

 

 

   

 

 

 


EXHIBIT II

Owned Vessels

 

Vessel Name

   Vessel Type    Year Built      Deadweight
(in metric tons)
 

Navios Serenity

   Handysize      2011         34,690   

Navios Ionian

   Ultra Handymax      2000         52,067   

Navios Vector

   Ultra Handymax      2002         50,296   

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 Celestial

   Ultra Handymax      2009         58,063   

Navios Astra

   Ultra Handymax      2006         53,468   

Navios Magellan

   Panamax      2000         74,333   

Navios Star

   Panamax      2002         76,662   

Navios Asteriks

   Panamax      2005         76,801   

Navios Centaurus

   Panamax      2012         81,472   

Navios Avior

   Panamax      2012         81,355   

Navios Bonavis

   Capesize      2009         180,022   

Navios Happiness

   Capesize      2009         180,022   

Navios Lumen

   Capesize      2009         180,661   

Navios Stellar

   Capesize      2009         169,001   

Navios Phoenix

   Capesize      2009         180,242   

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   

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 Apollon

     Ultra Handymax         2000         52,073         No   

Navios Primavera

     Ultra Handymax         2007         53,464         Yes   

Navios Armonia

     Ultra Handymax         2008         55,100         No   

Navios Oriana

     Ultra Handymax         2012         61,442         Yes   

Navios Libra II

     Panamax         1995         70,136         No   

Navios Altair

     Panamax         2006         83,001         No   

Navios Esperanza

     Panamax         2007         75,356         No   

Navios Marco Polo

     Panamax         2011         80,647         Yes   

Navios Southern Star

     Panamax         2013         82,224         Yes   

Golden Heiwa

     Panamax         2007         76,662         No   

Beaufiks

     Capesize         2004         180,310         Yes   

Rubena N

     Capesize         2006         203,233         No   

SC Lotta

     Capesize         2009         169,056         No   

King Ore

     Capesize         2010         176,800         No   

Navios Koyo

     Capesize         2011         181,415         Yes   

Navios Obeliks

     Capesize         2012         181,415         Yes   


Navios Asia Fleet to be Delivered (3)

 

Vessels

   Vessel Type    Built  

Navios TBN

   Panamax      2007   

Navios TBN

   Panamax      2007   

Navios TBN

   Panamax      2007   

Navios TBN

   Panamax      2007   

Navios TBN

   Panamax      2006   

Navios TBN

   Panamax      2006   

Total DWT of 464,173

     

Owned Fleet to be Delivered

 

Vessels

   Vessel Type    Built  

Navios Galileo

   Panamax      2006   

Navios Northern Star

   Panamax      2005   

Navios Amitie

   Panamax      2005   

Navios Taurus

   Panamax      2005   

Total DWT of 303,982

     

Long-term Chartered-in Fleet to be Delivered

 

Vessels

   Vessel Type    Delivery
Date
     Purchase
Option
     Deadweight
(in metric tons)
 

Navios Mercury

   Ultra Handymax      09/2013         Yes         61,000   

Navios Venus

   Ultra Handymax      02/2015         Yes         61,000   

Navios Felix

   Capesize      04/2016         Yes         180,000   

 

(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) 51% ownership of Navios Holdings.

Contact:

Navios Maritime Holdings Inc.

+1.212.906.8643

investors@navios.com

EX-99.2

Exhibit 99.2

The Navios Group Announces

Formation of

Navios Europe Inc.

And

Management of Five Vessels for the Benefit of HSH Nordbank AG

MONACO — (Marketwired) — 08/20/13 — The Navios Group, composed of Navios Maritime Holdings Inc. (NYSE: NM) (“Navios Holdings”), Navios Maritime Acquisition Corporation (NYSE: NNA) (“Navios Acquisition”) and Navios Maritime Partners L.P. (NYSE: NMM) (“Navios Partners”), announce the formation of Navios Europe Inc. (“Navios Europe”) as the next step in concluding the letter of intent signed with HSH Nordbank AG (“HSH”) in April of 2013.

Navios Europe, which will initially acquire five product tankers and five container vessels from debtors of HSH, will be owned 47.5% by Navios Holdings, 47.5% by Navios Acquisition and 5% by Navios Partners. It is anticipated that funding requirements will be satisfied in the same percentages.

Management of Vessels

In August 2013, Navios Europe arranged technical and commercial management for five out of the ten vessels. To date, the following vessels were delivered:

(1) The Esperanza N, a 2,007 TEU Sub-Panamax Container built in 2008; and

(2) The Harmony N, a 2,824 TEU Sub-Panamax Container built in 2006.

Three tanker vessels are also expected to be delivered through September 2013.

Closing

Navios Europe is expected to take ownership of all 10 vessels by November 1, 2013, at which point management of the remaining vessels will be transferred as well.

The transaction is subject to a number of conditions, and no assurance can be provided that the transaction will be concluded as contemplated, if at all.

Strategic Partnership

HSH and Navios are committed to their excellent working relationship. After the completion of this transaction, HSH and Navios hope to work together toward similar transactions.


About Navios Maritime Holdings Inc.

Navios Holdings (NYSE: NM) 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. For more information about Navios Holdings please visit its website: www.navios.com.

About Navios Maritime Acquisition Corporation

Navios Acquisition (NYSE: NNA) is an owner and operator of tanker vessels focusing in 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 Partners

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

About Navios Europe

Navios Europe is an owner and operator of container and tanker vessels. For more information about Navios Europe please visit its website: www.navios-europe.com.

Contact:

Navios Maritime Holdings Inc.

+1.212.906.8643

investors@navios.com