Navios Maritime Holdings Inc. Reports Financial Results for the First Quarter Ended March 31, 2017
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• Positioned to capture market recovery
- Industry leading operating efficiencies
- Operating cost is estimated 40% lower than the average of listed peers for 2016
- 43% decrease in G&A over the last two years based on Q1 annualized run-rate - Significant upside to market recovery in the remaining nine months of 2017
- 66.9% of available days with market exposure - 11,684 days
- 33.1% of available days fixed – 5,778 days
• Formed Navios Maritime Containers Inc.:
- 6.7% initial equity stake + 1.7% equity opportunity through warrants
- Initial target: 14-vessel fleet of Rickmers Maritime Trust Pte (“RMT”)
HIGHLIGHTS -- RECENT DEVELOPMENTS
In
Navios Containers, a newly formed
Navios Containers intends to use the proceeds to acquire the Fleet that
The acquisition is subject to a number of conditions, and no assurance can be provided that the acquisition will close at all or in part. Navios Containers also announced that it intends to file an application to register on the Norwegian Over-The-Counter market (N-OTC). Navios Containers expects to be registered on or about
FSL Trust is a Singapore-based business trust which owns a diversified fleet of 22 modern and high-quality oceangoing vessels (the “FSL Fleet”). The Fleet includes 12 product tankers, three chemical tankers, two crude oil tankers and five container vessels.
The acquisition is subject to a number of conditions, including (1) the satisfactory restructuring of the existing mortgage debt and other loan facilities of FSL Trust, (2) waiver by the Securities Industry Council of any obligation for Navios to make a mandatory take-over offer for all the units in FSL Trust (the “Whitewash Waiver”) and (3) approval of FSL Trust’s independent unitholders of the Whitewash Waiver. No assurance can be provided that these conditions will be satisfied and that any acquisition will be concluded at all or in part.
The parties have agreed to negotiate exclusively with each other and will seek to execute definitive agreements by
Asset Sales
Debt Refinancing
In
Fleet update
As of
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
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
First Quarter 2017 and 2016 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The first 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 | ||||||||||
March 31, | March 31, | ||||||||||
2017 | 2016 | ||||||||||
(unaudited) | (unaudited) | ||||||||||
Revenue | $ | 95,346 | $ | 101,487 | |||||||
Net Loss | $ | (48,719) | $ | (7,465) | |||||||
Adjusted Net Loss | $ | (39,621) | (1) | $ | (29,650) | (2) | |||||
Net cash provided by operating activities | $ | 28,592 | $ | 28,940 | |||||||
EBITDA | $ | 8,434 | $ | 45,424 | |||||||
Adjusted EBITDA | $ | 17,532 | (1) | $ | 30,553 | (2) | |||||
Basic Loss per Share | $ | (0.45) | $ | (0.11) | |||||||
Adjusted Basic Loss per Share | $ | (0.37) | (1) | $ | (0.32) | (2) |
(1) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share for the three months ended
(2) Adjusted EBITDA for the three months ended
Revenue from dry bulk vessel operations for the three months ended
Revenue from the logistics business was
Net Loss of
Net Loss of Navios Logistics was
Adjusted EBITDA of
EBITDA of Navios Logistics was
Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of the
Three Month | Three Month | |||||
Period Ended | Period Ended | |||||
March 31, | March 31, | |||||
2017 |
2016 |
|||||
(Unaudited) | (Unaudited) | |||||
Available Days (1) | 5,803 | 5,960 | ||||
Operating Days (2) | 5,791 | 5,861 | ||||
Fleet Utilization (3) | 99.8% | 98.4% | ||||
Equivalent Vessels (4) | 64 | 65 | ||||
TCE (5) | $ | 7,857 | $ | 7,008 |
(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,
A supplemental slide presentation will be available on the
Conference Call details:
Call Date/Time:
Call Title:
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 20913573
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: 20913573
This call will be simultaneously Webcast. The Webcast will be available on the
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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, future contracted revenues, potential capital gains, our ability to take advantage of dislocation in the market, and
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 | Three Month |
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Period Ended | Period Ended |
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March 31, 2017 | March 31, 2016 |
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(unaudited) | (unaudited) | ||||||||||||||||||
Revenue | $ | 95,346 | $ | 101,487 | |||||||||||||||
Administrative fee revenue from affiliates | 5,298 | 5,482 | |||||||||||||||||
Time charter, voyage and logistics business expenses | (50,726 | ) | (46,381 | ) | |||||||||||||||
Direct vessel expenses(1) | (30,044 | ) | (30,074 | ) | |||||||||||||||
General and administrative expenses incurred on behalf of affiliates | (5,298 | ) | (5,482 | ) | |||||||||||||||
General and administrative expenses(2) | (6,384 | ) | (6,438 | ) | |||||||||||||||
Depreciation and amortization | (25,623 | ) | (19,827 | ) | |||||||||||||||
Interest expense and finance cost, net | (27,422 | ) | (27,750 | ) | |||||||||||||||
Impairment loss on sale of vessel | (9,098 | ) | — | ||||||||||||||||
Other (expense)/ income, net | (1,355 | ) | 11,664 | ||||||||||||||||
Loss before equity in net earnings of affiliated companies | (55,306 | ) | (17,319 | ) | |||||||||||||||
Equity in net earnings of affiliated companies | 5,082 | 12,952 | |||||||||||||||||
Loss before taxes | $ | (50,224 | ) | $ | (4,367 | ) | |||||||||||||
Income tax benefit/ (expense) | 417 | (1,045 | ) | ||||||||||||||||
Net loss | (49,807 | ) | (5,412 | ) | |||||||||||||||
Less: Net loss/ (income) attributable to the noncontrolling interest | 1,088 | (2,053 | ) | ||||||||||||||||
Net loss attributable to Navios Holdings common stockholders | $ | (48,719 | ) | $ | (7,465 | ) | |||||||||||||
Loss attributable to Navios Holdings common stockholders, basic and diluted | $ | (51,363 | ) | $ | (11,437 | ) | |||||||||||||
Basic and diluted loss per share attributable to Navios Holdings common stockholders | $ | (0.45 | ) | $ | (0.11 | ) | |||||||||||||
Weighted average number of shares, basic and diluted | 115,168,874 | 106,036,603 | |||||||||||||||||
(1) Includes expenses of Navios Logistics of
(2) Includes expenses of Navios Logistics of
NAVIOS MARITIME HOLDINGS INC. |
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Other Financial Data |
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March 31, |
December 31, |
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2017 | 2016 | |||||||
(unaudited) | (unaudited) |
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ASSETS | ||||||||
Cash and cash equivalents, including restricted cash | $ | 138,190 | $ | 141,378 | ||||
Other current assets | 115,832 | 131,762 | ||||||
Deposits for vessels, port terminals and other fixed assets | 153,314 | 136,891 | ||||||
Vessels, port terminal and other fixed assets, net | 1,790,395 | 1,821,101 | ||||||
Other noncurrent assets | 262,382 | 234,612 | ||||||
Goodwill and other intangibles | 285,431 | 287,151 | ||||||
Total assets | $ | 2,745,544 | $ | 2,752,895 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities, including current portion of long-term debt, net | 236,836 | 251,783 | ||||||
Senior and ship mortgage notes, net | 1,297,502 | 1,296,537 | ||||||
Long-term debt, net of current portion | 319,147 | 324,731 | ||||||
Other noncurrent liabilities | 137,310 | 76,291 | ||||||
Total stockholders’ equity | 754,749 | 803,553 | ||||||
Total liabilities and stockholders’ equity | $ | 2,745,544 | $ | 2,752,895 | ||||
Three Month Period Ended March 31, 2017 |
Three Month Period Ended March 31, 2016 |
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(unaudited) |
(unaudited) |
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Net cash provided by operating activities | $ | 28,592 | $ | 28,940 | ||||
Net cash used in investing activities | $ | (22,977) | $ | (84,663) | ||||
Net cash (used in)/provided by financing activities | $ | (7,871) | $ | 47,074 | ||||
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
EBITDA represents net (loss)/income 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 and Adjusted EBITDA are used to measure its operating performance.
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 | 2017 |
2016 | |||||||||
(in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||||||
Net cash provided by operating activities | $ | 28,592 | $ | 28,940 | |||||||
Net (decrease)/ increase in operating assets | (31,043) | 11,329 | |||||||||
Net increase in operating liabilities | (14,690) | (29,403) | |||||||||
Net interest cost | 27,422 | 27,750 | |||||||||
Deferred finance charges | (1,389) | (1,284) | |||||||||
Provision for losses on accounts receivable | (254) | (106) | |||||||||
Equity in affiliates, net of dividends received | 821 | 8,888 | |||||||||
Payments for drydock and special survey | 5,955 | 1,363 | |||||||||
Noncontrolling interest | 1,088 | (2,053) | |||||||||
Other gain on assets | 1,030 | — | |||||||||
Impairment loss on sale of vessel | (9,098) | — | |||||||||
EBITDA | $ | 8,434 | $ | 45,424 | |||||||
Impairment loss on sale of vessel | 9,098 | — | |||||||||
Compensation from early redelivery of a vessel from its charterer | — | (14,871) | |||||||||
Adjusted EBITDA | $ | 17,532 | $ | 30,553 | |||||||
Navios Logistics EBITDA Reconciliation to Net (loss)/ income
March 31, | March 31, | |||||||||
Three Months Ended | 2017 |
2016 | ||||||||
(in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||||||
Net (loss)/ income | $ | (3,007) | $ | 5,674 | ||||||
Depreciation and amortization | 6,090 | 6,674 | ||||||||
Amortization of deferred drydock and special survey costs | 1,698 | 1,598 | ||||||||
Interest expense and finance cost, net | 5,781 | 6,204 | ||||||||
Income tax (benefit)/ expense | (484) | 976 | ||||||||
EBITDA | $ | 10,078 | $ | 21,126 | ||||||
EXHIBIT II | ||||||||||
Owned Vessels | ||||||||||
Vessel Name | Vessel Type | Year Built | Deadweight (in metric tons) |
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Navios Serenity | Handysize | 2011 | 34,690 | |||||||
Navios Ionian (1) | Ultra Handymax | 2000 | 52,067 | |||||||
Navios Horizon (1) | Ultra Handymax | 2001 | 50,346 | |||||||
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 | |||||||
(1) Agreed to be sold. |
Long term Chartered-in Fleet in Operation |
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Vessel Name | Vessel Type | Year Built |
Deadweight (in metric tons) |
Purchase Option(1) |
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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. |
Contact:Navios Maritime Holdings Inc. +1.212.906.8643 investors@navios.com