Market Overview

Navios Maritime Holdings Inc. Reports Financial Results for the First Quarter Ended March 31, 2019

Share:
  • $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

MONACO, May 28, 2019 (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 first quarter ended March 31, 2019.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, "I am pleased with the results of the first quarter of 2019, for which we reported revenue of $140.3 million and Adjusted EBITDA of $68.5 million."

Angeliki Frangou continued, "We are continuing to develop our logistics chain in South America. We are in the preliminary stages of constructing a modern upriver port facility in Mato Grosso do Sul, a fertile region exporting grains. This new port should provide a service to the region and create additional volume on the river for our barge business and grain transshipment terminal in Uruguay."

HIGHLIGHTS – RECENT DEVELOPMENTS

Debt Updates

During March 2019 and as of April 15, 2019, Navios South American Logistics Inc. ("Navios Logistics") repurchased a total of $35.5 million in par value of its 7.375% First Priority Ship Mortgage Notes due 2022 ("2022 Notes") from unaffiliated third parties in open market transactions for $17.6 million. On April 25, 2019, Navios Holdings entered into a secured credit facility of $50.0 million with Navios Logistics to be used for general corporate purposes, including the repurchase from time to time of the Company's 7.375% First Priority Ship Mortgage Notes due 2022 (the "2022 Notes"). The secured credit facility is available in multiple drawings, bears interest at a fixed rate of 12.75% for the first year and 14.75% for the second year, payable annually, and matures in April 2021. As of April 25, 2019, $19.0 million was drawn under this facility of which $18.7 million was used to acquire the 2022 Notes from Navios Logistics.

In May 2019, Navios Holdings released its Navios Maritime Partners L.P. ownership and 224,116 Navios Maritime Acquisition Corporation shares that were collateral under the 11.25% Senior Secured Notes and were replaced by one Capesize vessel.

In May 2019, Navios Holdings agreed the main terms for the extension of $39.5 million maturities from 2020 to June 2021.

Completion of Tender Offer for the Company's Preferred Stock

As of March 21, 2019, a total of 10,930 Series H were validly tendered in exchange for a total of approximately $4.2 million of cash consideration and approximately $4.7 million in aggregate principal amount of the Company's newly issued 9.75% Senior Notes due 2024 (the "2024 Notes"). As of April 18, 2019, a total of 8,841 Series G were validly tendered in exchange for a total of approximately $4.4 million of cash consideration and approximately $3.9 million in aggregate principal amount of 2024 Notes.

Fleet Update

From the beginning of 2018 through 2019 YTD, Navios Holdings has decreased the average age of its owned fleet by 20% and decreased its owned fleet capacity by 2%.

In May 2019, the Company agreed to acquire a former chartered-in vessel, the Sea Victory (TBN Navios Victory), a 2014-built Panamax vessel of 77,095 dwt, for a purchase price of $14.5 million. The acquisition is expected to be completed in Q3 2019.

On May 3, 2019, the Company sold to an unrelated third party the Navios Equator Prosper, a 2000-built Capesize vessel of 171,191 dwt, for a total net sale price of $11.5 million, paid in cash.

In April and May 2019, the Company agreed to sell to unrelated third parties the Navios Mercator, a 2002-built Ultra Handymax vessel of 53,553 dwt for a total net sale price of $6.7 million and the Navios Vector, a 2002-built Ultra Handymax vessel of 50,296 dwt for a total net sale price of $6.9 million, in each case to be paid in cash. Closing is expected in Q2 and Q3 of 2019.

Navios Holdings controls a fleet of 60 vessels (including two vessels expected to be sold) totaling 6.2 million dwt, of which 33 are owned and 27 are chartered-in under long-term charters (collectively, the "Core Fleet"). The fleet consists of 18 Capesize, 28 Panamax, 12 Ultra-Handymax and two Handysize vessels, with an average age of 7.7 years, basis fully delivered fleet.

As of May 20, 2019, Navios Holdings has chartered-out 82.6% of available days for the remaining nine months of 2019, out of which 42.9% are chartered-out on fixed rate and 39.7% on index. The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining nine months of 2019 is $13,852 per day.

The above figures do not include the fleets of Navios Logistics and Navios Maritime Containers L.P. ("Navios Containers") and vessels servicing contracts of affreightment.

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

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 Navios Holdings (including Navios Logistics and Navios Containers), and EBITDA of Navios Logistics and Navios Containers (both on a stand-alone basis) and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.

As of November 30, 2018, Navios Holdings obtained control over Navios Containers and consequently consolidated Navios Containers from that date onwards.

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 March 31, 2019 was $52.7 million, as compared to $64.7 million for the same period during 2018. The decrease in dry bulk revenue was mainly attributable to the decrease in the time charter equivalent ("TCE") per day by 12.4% to $9,622 per day in the first quarter of 2019, as compared to $10,983 per day in the same period of 2018.

Revenue from the logistics business was $55.8 million for the three months ended March 31, 2019 as compared to $52.2 million for the same period in 2018. The increase was mainly attributable to (i) a $1.8 million increase in revenue from the barge business mainly due to an increase in the amount of dry and liquid cargo moved, (ii) a $1.2 million increase in revenue from the cabotage business mainly due to an increase in operating days of the cabotage fleet; and (iii) a $0.6 million increase in revenue from port terminal business, mainly due to more volumes transshipped in the grain port terminal.

Revenue of Navios Containers for the three months ended March 31, 2019 was $31.8 million and consisted of time charter revenues. Navios Containers' results of operations were not included in the Company's consolidated results of operations for the three months ended March 31, 2018.

Net Loss attributable to Navios Holdings' common stockholders was $5.3 million for the three months ended March 31, 2019, as compared to $40.9 million Net Loss attributable to Navios Holdings' common stockholders for the same period in 2018. Net Loss attributable to Navios Holdings' common stockholders was affected by items described in the table above. Excluding these items, Adjusted Net Income attributable to Navios Holdings' common stockholders for the three months ended March 31, 2019 was $0.2 million, as compared to $34.1 million Adjusted Net Loss attributable to Navios Holdings' common stockholders for the same period in 2018. This increase in Adjusted Net Income was mainly due to (i) a $40.4 million increase in Adjusted EBITDA, (ii) a $0.6 million decrease in amortization for deferred drydock and special survey costs, and (iii) a $0.4 million decrease in share-based compensation expense. This overall increase of $41.4 million was partially mitigated by (i) a $3.7 million increase in depreciation and amortization, (ii) a $2.6 million increase in interest expense and finance cost, net, and (iii) a $0.8 million decrease in income tax benefit.

Net Income of Navios Logistics, on a standalone basis, was $5.3 million for the three month period ended March 31, 2019 as compared to $1.0 million Net Loss for the same period in 2018.

Net Loss of Navios Containers, on a standalone basis, was $0.2 million for the three month period ended March 31, 2019. Navios Containers' results of operations were not included in the Company's consolidated results of operations for the three month period ended March 31, 2018.

Adjusted EBITDA of Navios Holdings for the three month period ended March 31, 2019 increased by $40.4 million to $68.5 million, as compared to $28.1 million for the same period in 2018. The increase in Adjusted EBITDA was primarily due to (i) a $23.4 million increase in revenue, (ii) a $15.7 million increase in gain on bond extinguishment, (iii) a $10.8 million increase in equity in net earnings from affiliated companies, (iv) a $10.2 million increase in other income, net, and (v) a $1.9 million decrease in time charter, voyage and logistics business expenses. This overall increase of $62.0 million was partially offset by (i) a $15.9 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs), (ii) a $3.6 million increase in general and administrative expenses (excluding share-based compensation expenses), and (iii) a $2.1 million decrease in net loss attributable to noncontrolling interest.

EBITDA of Navios Logistics, on a standalone basis, was $24.2 million for the three month period ended March 31, 2019, as compared to $16.8 million for the same period in 2018.

EBITDA of Navios Containers, on a standalone basis, was $12.0 million for the three month period ended March 31, 2019.

Fleet Summary Data:

The following table reflects certain key indicators indicative of the performance of Navios Holdings' dry bulk operations (excluding the Navios Logistics and Navios Containers fleets) and its fleet performance for the three month periods ended March 31, 2019 and 2018, respectively.

       
  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, Navios Holdings will host a conference call today, May 28, 2019, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on earnings results for the first quarter ended March 31, 2019.

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, 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 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 Containers L.P.

Navios Maritime Containers L.P. (NASDAQ: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.

About Navios Maritime Partners L.P.

Navios Maritime Partners L.P. (NYSE:NMM) is a publicly traded master limited partnership which owns and operates dry cargo 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.

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 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, 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 or debt securities.

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
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 the United States.

EBITDA represents net income/(loss) 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". 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 and bargain gain, (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.

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 (including Navios Logistics and Navios Containers) and EBITDA of Navios Logistics and Navios Containers on a stand-alone basis:

 
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.

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