Revenue
- $390.4 million for 9M 2018
- $141.5 million for Q3 2018
Cash from operating activities
- $39.6 million for 9M 2018
- $10.1 million for Q3 2018
Adjusted EBITDA
- $134.1 million for 9M 2018
- $62.8 million for Q3 2018
Fleet renewal (2017-2018YTD)
- 17% decrease in average age
- 8% increase in capacity
MONACO, Nov. 20, 2018 (GLOBE NEWSWIRE) -- Navios Maritime Holdings Inc. ("Navios Holdings" or "the Company") (NYSE: NM), a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the third quarter and nine months ended September 30, 2018.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results of the third quarter of 2018, for which we reported revenue of $141.5 million and Adjusted EBITDA of $62.8 million. We continue to see the positive effects of healthier charter markets on our business. Rates for dry bulk vessels improved materially, with the TCE rate of our fleet for the third quarter of 2018 about 50% higher than the third quarter of 2017. This increased our adjusted EBITDA from core shipping operations by almost 250% in the third quarter of 2018 compared to the third quarter of 2017.”
Angeliki Frangou continued, “We have leveraged the increase in market rates through our chartering initiative that has 26 vessels chartered out on index linked agreements with an average charter rate equal to 110% of the respective index. The charters provide Navios multiple options for fixing the charter rate for all or a portion of the remaining charter period.”
HIGHLIGHTS – RECENT DEVELOPMENTS
- Bond Repurchase
In September 2018, Navios Holdings repurchased a total of $35.7 million in par value of its 7.375% First Priority Ship Mortgage Notes due 2022.
Fleet Update
- Renewal and Expansion
In November 2018, Navios Primavera, a 2007-built, 53,464 dwt vessel, was delivered to the owned fleet. Navios Holdings in August 2018, exercised the option to acquire the above chartered-in vessel, for a purchase price of $10.5 million.
- Sale of vessels
In November 2018, Navios Holdings agreed to sell to an unrelated third party the Navios Magellan, a 2000-built Panamax vessel of 74,333 dwt, for a total net sale price of $7.0 million, to be paid in cash.
Following fleet activities during the period 2017-2018YTD, the average age of Navios Holdings’ fleet has decreased by 17%, basis fully delivered fleet, and the capacity of the fleet has increased by 8%.
- Capturing market recovery
Navios Holdings controls a fleet of 70 vessels totaling 7.1 million dwt, of which 36 are owned and 34 are chartered-in under long-term charters (collectively, the "Core Fleet"). The fleet consists of 20 Capesize, 32 Panamax, 16 Ultra-Handymax and two Handysize vessels, with an average age of 8.0 years, basis fully delivered fleet.
Navios Holdings 5,457 available days for the remaining three months of 2018 and 20,428 total available days for 2019 (excluding the fleet of Navios Logistics and vessels servicing contracts of affreightment).
The average TCE rate we achieved for the third quarter of 2018 was $14,210 per day, approximately 50% higher than the same quarter of last year. For the nine month period ended September 30, 2018, we achieved a TCE of $12,368 per day, approximately 40% higher than the same period in 2017.
As of November 7, 2018, Navios Holdings has chartered-out 93.7% of available days for the remaining three months of 2018, out of which 64.0% on fixed rate and 29.7% on index or profit sharing, and 42.8% of available days for 2019, out of which 8.3% on fixed rate and 34.5% on index or profit sharing. The above figures do not include the fleet of Navios Logistics and vessels servicing contracts of affreightment.
Exhibit II provides certain details of the Core Fleet of Navios Holdings. It does not include the fleet of Navios Logistics.
Earnings Highlights
EBITDA, Adjusted EBITDA, Adjusted Net Income/(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 Income/(Loss) and Adjusted Basic Loss per Share of Navios Holdings (including Navios Logistics), and EBITDA of Navios Logistics (on a stand-alone basis), and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.
Third Quarter 2018 and 2017 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The third quarter 2018 and 2017 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
| Three Month Period Ended | Three Month Period Ended | |||||||
| September 30, | September 30, | |||||||
| 2018 | 2017 | |||||||
| (unaudited) | (unaudited) | |||||||
| Revenue | $ | 141,453 | $ | 120,555 | ||||
| Net Loss | $ | (1,816) | $ | (28,332) | ||||
| Adjusted Net Income/(Loss) | $ | 944 | (1) | $ | (28,332) | |||
| Net cash provided by/(used in) operating activities | $ | 10,077 | $ | (12,626) | ||||
| EBITDA | $ | 60,047 | $ | 31,192 | ||||
| Adjusted EBITDA | $ | 62,807 | (1) | $ | 31,192 | |||
| Basic Loss per Share | $ | (0.04) | $ | (0.26) | ||||
| Adjusted Basic Loss per Share | $ | (0.01) | (1) | $ | (0.26) | |||
| (1) Adjusted EBITDA, Adjusted Net Income and Adjusted Basic Loss per Share for the three months ended September 30, 2018 exclude a $2.8 million impairment loss relating to the sale of Navios Mars and Navios Sphera. | ||||||||
Revenue from dry bulk vessel operations for the three months ended September 30, 2018 was $85.6 million, as compared to $61.0 million for the same period during 2017. The increase in dry bulk revenue was mainly attributable to the increase in the time charter equivalent (“TCE”) per day by 49.9% to $14,210 per day in the third quarter of 2018, as compared to $9,481 per day in the same period of 2017.
Revenue from the logistics business was $55.9 million for the three months ended September 30, 2018, as compared to $59.6 million for the same period in 2017. The decrease was mainly attributable to (i) a $3.7 million decrease in revenue from the cabotage business mainly due to fewer operating days; (ii) a $2.8 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port's volumes of products sold; and (iii) a $1.9 million decrease in revenue from the barge business mainly related to liquid cargo transportation. The overall decrease was partially mitigated by (i) a $4.7 million increase in revenue from the port terminal business mainly due to the commencement of operations at the new iron ore terminal.
Net Loss of Navios Holdings was $1.8 million for the three months ended September 30, 2018, as compared to $28.3 million for the same period in 2017. Net Loss was affected by items described in the table above. Excluding these items, Adjusted Net Income of Navios Holdings for the three months ended September 30, 2018 was $0.9 million, as compared to $28.3 million Adjusted Net Loss for the same period in 2017. The $29.2 million increase in Adjusted Net Income was mainly due to (i) a $31.6 million increase in Adjusted EBITDA; (ii) a $1.6 million decrease in depreciation and amortization; and (iii) a $0.3 million increase in income tax benefit. This overall increase of $33.5 million was partially mitigated by (i) a $3.9 million increase in interest expense and finance cost, net; (ii) a $0.3 million increase in amortization for deferred drydock and special survey costs; and (iii) a $0.1 million increase in share-based compensation expense.
Net Income of Navios Logistics was $6.7 million for the three month period ended September 30, 2018, as compared to $1.8 million for the same period in 2017.
Adjusted EBITDA of Navios Holdings for the three months ended September 30, 2018 increased by $31.6 million to $62.8 million, as compared to $31.2 million for the same period in 2017. The increase in Adjusted EBITDA was primarily due to (i) a $20.9 million increase in revenue; (ii) a $6.8 million decrease in time charter, voyage and logistics business expenses; (iii) a $6.5 million increase in gain on bond extinguishment; (iv) a $3.9 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); and (v) a $0.3 million decrease in general and administrative expenses (excluding share-based compensation expenses). This overall increase of $38.4 million was partially mitigated by (i) a $5.1 million decrease in equity in net earnings from affiliated companies; and (ii) a $1.7 million increase in net income attributable to noncontrolling interest.
EBITDA of Navios Logistics was $25.5 million for the three month period ended September 30, 2018, as compared to $18.2 million for the same period in 2017.
Nine Months Ended September 30, 2018 and 2017 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The information for the nine month period ended September 30, 2018 and 2017 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
| Nine Month Period Ended | Nine Month Period Ended | ||||||||
| September 30, | September 30, | ||||||||
| 2018 | 2017 | ||||||||
| (unaudited) | (unaudited) | ||||||||
| Revenue | $ | 390,386 | $ | 334,519 | |||||
| Net Loss | $ | (67,965) | $ | (114,309) | |||||
| Adjusted Net Loss | $ | (51,895) | (1) | $ | (95,391) | (2) | |||
| Net cash provided by operating activities | $ | 39,591 | $ | 33,578 | |||||
| EBITDA | $ | 118,066 | $ | 61,144 | |||||
| Adjusted EBITDA | $ | 134,136 | (1) | $ | 80,062 | (2) | |||
| Basic Loss per Share | $ | (0.63) | $ | (1.04) | |||||
| Adjusted Basic Loss per Share | $ | (0.50) | (1) | $ | (0.89) | (2) | |||
| (1) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share for the nine months ended September 30, 2018 exclude a $16.1 million impairment loss relating to the sale of Navios Herakles, Navios Achilles, Navios Mars and Navios Sphera. | |||||||||
| (2) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share for the nine months ended September 30, 2017 exclude (i) a $14.2 million impairment loss relating to the sale of Navios Ionian and Navios Horizon; and (ii) $4.7 million non-cash impairment losses relating to our affiliates. Adjusted Basic Loss per Share for the nine months ended September 30, 2017 also excludes a gain of $1.1 million following the completion of the Series G and H Exchange Program and the conversion of accrued dividend of private preferred stock to common stock. | |||||||||
Revenue from dry bulk vessel operations for the nine months ended September 30, 2018 was $222.1 million, as compared to $171.8 million for the same period in 2017. The increase in dry bulk revenue was mainly attributable to the increase in TCE per day by 40.0% to $12,368 per day in the nine month period ended September 30, 2018, as compared to $8,836 per day in the same period in 2017.
Revenue from the logistics business was $168.3 million for the nine months ended September 30, 2018, as compared to $162.8 million for the same period in 2017. The increase was mainly attributable to a $21.7 million increase in revenue from the port terminal business mainly due to the commencement of operations at the new iron ore terminal. The overall increase was partially mitigated by (i) a $7.9 million decrease in revenue from the barge business mainly related to liquid cargo transportation; (ii) a $6.4 million decrease in revenue from the cabotage business mainly due to fewer operating days and lower rates; and (iii) a $1.9 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port's volumes of products sold.
Net Loss of Navios Holdings was $68.0 million for the nine months ended September 30, 2018, as compared to $114.3 million for the same period in 2017. Net Loss was affected by items described in the table above. Excluding these items, Adjusted Net Loss of Navios Holdings for the nine months ended September 30, 2018 was $51.9 million, as compared to $95.4 million for the same period in 2017. The $43.5 million decrease in Adjusted Net Loss was mainly due to (i) a $54.0 million increase in Adjusted EBITDA; (ii) a $2.7 million decrease in depreciation and amortization; (iii) a $0.7 million increase in income tax benefit; and (iv) a $0.4 million decrease in amortization for deferred drydock and special survey costs. This overall decrease was partially offset by (i) a $14.0 million increase in interest expense and finance cost, net; and (ii) a $0.3 million increase in share-based compensation expense.
Net Income of Navios Logistics was $9.7 million for the nine month period ended September 30, 2018, as compared to $3.3 million for the same period in 2017.
Adjusted EBITDA of Navios Holdings for the nine months ended September 30, 2018 increased by $54.0 million to $134.1 million, as compared to $80.1 million for the same period in 2017. The $54.0 million increase in Adjusted EBITDA was primarily due to (i) a $55.9 million increase in revenue; (ii) a $16.5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $6.2 million decrease in time charter, voyage and logistics business expenses; and (iv) a $4.8 million increase in gain on bond and debt extinguishment. This overall increase was partially mitigated by (i) a $20.6 million decrease in equity in net earnings from affiliated companies; (ii) a $3.1 million increase in other expense, net; (iii) a $2.3 million increase in general and administrative expenses (excluding share-based compensation expenses); (iv) a $2.3 million increase in net income attributable to the noncontrolling interest; and (v) a $1.1 million decrease in gain on sale of assets.
EBITDA of Navios Logistics was $64.8 million for the nine month period ended September 30, 2018, as compared to $47.5 million for the same period in 2017.
Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of Navios Holdings' dry bulk operations (excluding the Navios Logistics fleet) and its fleet performance for the three and nine month periods ended September 30, 2018 and 2017, respectively.
| Three Month | Three Month | Nine Month | Nine Month | |||||||||||||
| Period Ended | Period Ended | Period Ended | Period Ended | |||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Available Days (1) | 5,875 | 5,794 | 17,222 | 17,564 | ||||||||||||
| Operating Days (2) | 5,858 | 5,789 | 17,161 | 17,534 | ||||||||||||
| Fleet Utilization (3) | 99.7% | 99.9% | 99.6% | 99.8% | ||||||||||||
| Equivalent Vessels (4) | 64 | 63 | 63 | 64 | ||||||||||||
| TCE (5) | $ | 14,210 | $ | 9,481 | $ | 12,368 | $ | 8,836 | ||||||||
| (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 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, November 20, 2018, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on earnings results for the third quarter and nine months ended September 30, 2018.
A supplemental slide presentation will be available on the Navios Holdings website at www.navios.com under the "Investors" section by 8:00 am ET on the day of the call.
Conference Call details:
Call Date/Time: Tuesday, November 20, 2018 at 8:30 am ET
Call Title: Navios Holdings Q3 2018 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 974 7749
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: 974 7749
This call will be simultaneously Webcast. The Webcast will be available on the Navios Holdings website, www.navios.com, under the "Investors" section. The Webcast will be archived and available at the same Web address for two weeks following the call.
About Navios Maritime Holdings Inc.
Navios Maritime Holdings Inc. (NYSE: NM) is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of dry bulk commodities including iron ore, coal and grain. For more information about Navios Holdings please visit our website: www.navios.com.
About Navios South American Logistics Inc.
Navios South American Logistics Inc. is one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia region river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics serves the storage and marine transportation needs of its petroleum, agricultural and mining customers through its port terminals, river barge and coastal cabotage operations. For more information about Navios Logistics please visit its website: www.navios-logistics.com.
About Navios Maritime Partners L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is a publicly traded master limited partnership which owns and operates container and dry bulk vessels. For more information, please visit its website at www.navios-mlp.com.
About Navios Maritime Acquisition Corporation
Navios Acquisition (NYSE: NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. For more information about Navios Acquisition, please visit its website: www.navios-acquisition.com.
About Navios Maritime Midstream Partners L.P.
Navios Maritime Midstream Partners L.P. (NYSE: NAP) is a publicly traded master limited partnership which owns and operates crude oil tankers under long-term employment contracts. For more information, please visit its website at www.navios-midstream.com.
About Navios Maritime Containers Inc.
Navios Maritime Containers Inc. (N-OTC: NMCI) is a growth vehicle dedicated to the container sector of the maritime industry. For more information, please visit its website at www.navios-containers.com.
Forward Looking Statements - Safe Harbor
This press release and our earnings call contain and will contain forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including cash flow generation for the remainder of 2018, future contracted revenues, potential capital gains, our ability to take advantage of dislocation in the market and any market recovery, and Navios Holdings' growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Holdings at the time these statements were made. Although Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Holdings. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry cargo shipping sector in general and the demand for our Panamax, Capesize and Ultra Handymax vessels in particular, fluctuations in charter rates for dry cargo carriers vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance, and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions, competitive factors in the market in which Navios Holdings operates, the value of our publicly traded subsidiaries, risks associated with operations outside the United States, Vale’s obligations under the Vale port contract, and other factors listed from time to time in Navios Holdings' filings with the Securities and Exchange Commission, including its Forms 20-F and Forms 6-K. Navios Holdings expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Holdings' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Holdings makes no prediction or statement about the performance of its common stock.
Contact:
Navios Maritime Holdings Inc.
+1.212.906.8643
investors@navios.com
| EXHIBIT I | ||||||||||||||||||||||||||||||
| NAVIOS MARITIME HOLDINGS INC. | ||||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||||
| (Expressed in thousands of U.S. dollars — except share and per share data) | ||||||||||||||||||||||||||||||
| Three Month Period Ended September 30, 2018 | Three Month Period Ended September 30, 2017 | Nine Month Period Ended September 30, 2018 | Nine Month Period Ended September 30, 2017 | |||||||||||||||||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||||||||
| Revenue | $ | 141,453 | $ | 120,555 | $ | 390,386 | $ | 334,519 | ||||||||||||||||||||||
| Administrative fee revenue from affiliates | 7,357 | 6,284 | 21,488 | 16,942 | ||||||||||||||||||||||||||
| Time charter, voyage and logistics business expenses | (49,980) | (56,824) | (155,363) | (161,628) | ||||||||||||||||||||||||||
| Direct vessel expenses(1) | (24,959) | (28,739) | (73,756) | (90,566) | ||||||||||||||||||||||||||
| General and administrative expenses incurred on behalf of affiliates | (7,357) | (6,284) | (21,488) | (16,942) | ||||||||||||||||||||||||||
| General and administrative expenses(2) | (6,503) | (6,711) | (21,757) | (19,203) | ||||||||||||||||||||||||||
| Depreciation and amortization | (24,644) | (26,179) | (75,247) | (77,893) | ||||||||||||||||||||||||||
| Interest expense and finance cost, net | (32,734) | (28,825) | (97,797) | (83,812) | ||||||||||||||||||||||||||
| Impairment loss on sale of vessels | (2,760) | — | (16,070) | (14,239) | ||||||||||||||||||||||||||
| Other income/(expense), net | 4,597 | (1,912) | (2,464) | (3,075) | ||||||||||||||||||||||||||
| Income/(loss) before equity in net earnings of affiliated companies | 4,470 | (28,635) | (52,068) | (115,897) | ||||||||||||||||||||||||||
| Equity in net (losses)/earnings of affiliated companies | (4,231) | 901 | (13,720) | 2,208 | ||||||||||||||||||||||||||
| Income/(loss) before taxes | $ | 239 | $ | (27,734) | $ | (65,788) | $ | (113,689) | ||||||||||||||||||||||
| Income tax benefit | 380 | 69 | 1,324 | 562 | ||||||||||||||||||||||||||
| Net income/(loss) | 619 | (27,665) | (64,464) | (113,127) | ||||||||||||||||||||||||||
| Less: Net income attributable to the noncontrolling interest | (2,435) | (667) | (3,501) | (1,182) | ||||||||||||||||||||||||||
| Net loss attributable to Navios Holdings common stockholders | $ | (1,816) | $ | (28,332) | $ | (67,965) | $ | (114,309) | ||||||||||||||||||||||
| Loss attributable to Navios Holdings common stockholders, basic and diluted | $ | (4,382) | $ | (30,272) | $ | (75,644) | $ | (121,049) | ||||||||||||||||||||||
| Basic and diluted net losses per share attributable to Navios Holdings common stockholders | $ | (0.04) | $ | (0.26) | $ | (0.63) | $ | (1.04) | ||||||||||||||||||||||
| Weighted average number of shares, basic and diluted | 119,423,135 | 117,535,234 | 119,423,025 | 116,260,640 | ||||||||||||||||||||||||||
| (1) Includes expenses of Navios Logistics of $13.9 million and $18.4 million for the three months ended September 30, 2018 and 2017, respectively and $43.3 million and $55.0 million for the nine months ended September 30, 2018 and 2017, respectively. | ||||||||||||||||||||||||||||||
| (2) Includes expenses of Navios Logistics of $3.4 million and $4.0 million for the three months ended September 30, 2018 and 2017, respectively and $11.3 million and $11.7 million for the nine months ended September 30, 2018 and 2017, respectively. | ||||||||||||||||||||||||||||||
| NAVIOS MARITIME HOLDINGS INC. | ||||||||||
| Other Financial Data | ||||||||||
| September 30, 2018 | December 31, 2017 | |||||||||
| (unaudited) | (unaudited) | |||||||||
| ASSETS | ||||||||||
| Cash and cash equivalents, including restricted cash | $ | 142,981 | $ | 134,190 | ||||||
| Other current assets | 133,757 | 121,886 | ||||||||
| Deposits for vessels, port terminals and other fixed assets | 1,064 | 36,849 | ||||||||
| Vessels, port terminal and other fixed assets, net | 1,694,429 | 1,809,225 | ||||||||
| Other non-current assets | 244,002 | 251,073 | ||||||||
| Goodwill and other intangibles | 272,624 | 276,758 | ||||||||
| Total assets | $ | 2,488,857 | $ | 2,629,981 | ||||||
| LIABILITIES AND EQUITY | ||||||||||
| Current liabilities, including current portion of long-term debt, net | 232,941 | 236,194 | ||||||||
| Senior and ship mortgage notes, net | 1,270,726 | 1,301,999 | ||||||||
| Long-term debt, net of current portion | 295,754 | 346,604 | ||||||||
| Other non-current liabilities | 133,236 | 128,020 | ||||||||
| Total stockholders’ equity | 556,200 | 617,164 | ||||||||
| Total liabilities and stockholders’ equity | $ | 2,488,857 | $ | 2,629,981 | ||||||
Disclosure of Non-GAAP Financial Measures
EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) and Adjusted Basic Loss per Share are “non-U.S. GAAP financial measures” and should not be used in isolation or considered substitutes for net income/ (loss), cash flow from operating activities and other operations or cash flow statement data prepared in accordance with generally accepted accounting principles in the United States.
EBITDA represents net (loss)/income attributable to Navios Holdings' common stockholders before interest and finance costs, before depreciation and amortization, before income taxes and before stock-based compensation. Adjusted EBITDA represents EBITDA, excluding certain items as described under “Earnings Highlights”. Adjusted Income/(Loss) and Adjusted Basic Loss per Share represent Net Income/(Loss) and Basic Loss per Share, excluding certain items as described under “Earnings Highlights”. We use EBITDA and Adjusted EBITDA as liquidity measures and reconcile EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of (i) net increase/(decrease) in operating assets, (ii) net (increase)/decrease in operating liabilities, (iii) net interest cost, (iv) deferred finance charges and gains/(losses) on bond and debt extinguishment, (v) (provision)/recovery for losses on accounts receivable, (vi) equity in affiliates, net of dividends received, (vii) payments for drydock and special survey costs, (viii) noncontrolling interest, (ix) gain/ (loss) on sale of assets/ subsidiaries, (x) unrealized (loss)/gain on derivatives, and (xi) loss on sale and reclassification to earnings of available-for-sale securities and impairment charges. Navios Holdings believes that EBITDA and Adjusted EBITDA are a basis upon which liquidity can be assessed and represents useful information to investors regarding Navios Holdings’ ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. Navios Holdings also believes that EBITDA and Adjusted EBITDA are used (i) by prospective and current lessors as well as potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.
EBITDA and Adjusted EBITDA are presented to provide additional information with respect to the ability of Navios Holdings to satisfy its respective obligations, including debt service, capital expenditures, working capital requirements and pay dividends. While EBITDA and Adjusted EBITDA are frequently used as measures of operating results and the ability to meet debt service requirements, the definitions of EBITDA and Adjusted EBITDA used here may not be comparable to those used by other companies due to differences in methods of calculation.
EBITDA and Adjusted EBITDA have limitations as an analytical tool, and therefore, should not be considered in isolation or as a substitute for the analysis of Navios Holdings’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; (ii) EBITDA and Adjusted EBITDA do not reflect the amounts necessary to service interest or principal payments on our debt and other financing arrangements; and (iii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, among others, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Holdings’ performance. Furthermore, our calculation of EBITDA and Adjusted EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
Navios Logistics EBITDA is used to measure its operating performance.
The following tables provide a reconciliation of EBITDA and Adjusted EBITDA of Navios Holdings (including Navios Logistics) and EBITDA of Navios Logistics on a stand-alone basis:
| Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations | |||||||||
| September 30, | September 30, | ||||||||
| Three Months Ended | 2018 | 2017 | |||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||||
| Net cash provided by/(used in) operating activities | $ | 10,077 | $ | (12,626) | |||||
| Net increase in operating assets | 4,409 | 8,462 | |||||||
| Net decrease in operating liabilities | 18,686 | 4,916 | |||||||
| Net interest cost | 32,734 | 28,826 | |||||||
| Deferred finance charges | (2,318) | (1,440) | |||||||
| Recovery for losses on accounts receivable | 394 | 300 | |||||||
| Equity in affiliates, net of dividends received | (5,377) | 427 | |||||||
| Payments for drydock and special survey costs | 173 | 2,970 | |||||||
| Noncontrolling interest | (2,435) | (667) | |||||||
| Other gain on assets | — | 24 | |||||||
| Impairment loss on sale of vessels | (2,760) | — | |||||||
| Gain on bond extinguishment | 6,464 | — | |||||||
| EBITDA | $ | 60,047 | $ | 31,192 | |||||
| Impairment loss on sale of vessels | 2,760 | — | |||||||
| Adjusted EBITDA | $ | 62,807 | $ | 31,192 | |||||
| Three Month Period Ended | September 30, | September 30, | |||||
| (in thousands of U.S. dollars) | 2018 | 2017 | |||||
| (unaudited) | (unaudited) | ||||||
| Net cash provided by/(used in) operating activities | $ | 10,077 | $ | (12,626) | |||
| Net cash provided by investing activities | $ | 74,620 | $ | 2,891 | |||
| Net cash used in financing activities | $ | (63,148) | $ | (5,697) | |||
Adjusted EBITDA breakdown
| September 30, | September 30, | |||||
| Three Months Ended | 2018 | 2017 | ||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||
| Adjusted EBITDA from core shipping operations | $ | 43,925 | $ | 12,780 | ||
| Navios Logistics (including noncontrolling interest) | 23,113 | 17,511 | ||||
| Equity in net (losses)/earnings of affiliated companies | (4,231 | ) | 901 | |||
| Adjusted EBITDA | $ | 62,807 | $ | 31,192 | ||
| Navios Logistics EBITDA Reconciliation to Net income | |||||||
| September 30, | September 30, | ||||||
| Three Months Ended | 2018 | 2017 | |||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||
| Net income | $ | 6,730 | $ | 1,844 | |||
| Depreciation and amortization | 7,255 | 7,156 | |||||
| Amortization of deferred drydock and special survey costs | 2,054 | 1,867 | |||||
| Interest expense and finance cost, net | 9,956 | 7,446 | |||||
| Income tax benefit | (447) | (135) | |||||
| EBITDA | $ | 25,548 | $ | 18,178 | |||
| Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations | |||||||||
| September 30, | September 30, | ||||||||
| Nine Months Ended | 2018 | 2017 | |||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||||
| Net cash provided by operating activities | $ | 39,591 | $ | 33,578 | |||||
| Net increase/(decrease) in operating assets | 13,742 | (30,954) | |||||||
| Net increase in operating liabilities | (3,095) | (12,103) | |||||||
| Net interest cost | 97,797 | 83,812 | |||||||
| Deferred finance charges | (5,963) | (4,294) | |||||||
| (Provision)/recovery for losses on accounts receivable | (418) | 276 | |||||||
| Equity in affiliates, net of dividends received | (16,698) | (6,564) | |||||||
| Payments for drydock and special survey costs | 6,189 | 10,024 | |||||||
| Noncontrolling interest | (3,501) | (1,182) | |||||||
| Other gain on assets | 28 | 1,075 | |||||||
| Impairment loss on sale of vessels | (16,070) | (14,239) | |||||||
| Gain on bond and debt extinguishment | 6,464 | 1,715 | |||||||
| EBITDA | $ | 118,066 | $ | 61,144 | |||||
| Impairment loss on sale of vessels | 16,070 | 14,239 | |||||||
| Other items from affiliates | — | 4,679 | |||||||
| Adjusted EBITDA | $ | 134,136 | $ | 80,062 | |||||
| September 30, | September 30, | |||||||
| Nine Months Ended | 2018 | 2017 | ||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||||
| Net cash provided by operating activities | $ | 39,591 | $ | 33,578 | ||||
| Net cash provided by/(used in) investing activities | $ | 51,870 | $ | (32,987) | ||||
| Net cash used in financing activities | $ | (82,670) | $ | (22,730) | ||||
| Navios Logistics EBITDA Reconciliation to Net Income | |||||||
| September 30, | September 30, | ||||||
| Nine Months Ended | 2018 | 2017 | |||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||
| Net income | $ | 9,677 | $ | 3,267 | |||
| Depreciation and amortization | 21,635 | 19,624 | |||||
| Amortization of deferred drydock and special survey costs | 5,775 | 5,874 | |||||
| Interest expense and finance cost, net | 29,198 | 19,522 | |||||
| Income tax benefit | (1,526) | (763) | |||||
| EBITDA | $ | 64,759 | $ | 47,524 | |||
Adjusted EBITDA breakdown
| September 30, | September 30, | |||||
| Nine Months Ended | 2018 | 2017 | ||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||
| Adjusted EBITDA from core shipping operations | $ | 86,598 | $ | 31,512 | ||
| Navios Logistics (including noncontrolling interest) | 61,258 | 46,342 | ||||
| Equity in net (losses)/earnings of affiliated companies | (13,720 | ) | 2,208 | |||
| Adjusted EBITDA | $ | 134,136 | $ | 80,062 | ||
| EXHIBIT II | ||||||
| Owned Vessels | ||||||
| Vessel Name | Vessel Type | Year Built | Deadweight (in metric tons) | |||
| Navios Serenity | Handysize | 2011 | 34,690 | |||
| 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 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 Magellan (4) | 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 Equator Prosper | Capesize | 2000 | 171,191 | |||
| 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 | |||
| 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) | ||||
| 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 | ||||
| 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 | ||||
| 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 Canary | Capesize | 2015 | 180,528 | Yes | ||||
| Dream Coral | Capesize | 2015 | 181,249 | Yes | ||||
| Navios Felix | Capesize | 2016 | 181,221 | Yes | ||||
| Long term Chartered-in Fleet to be delivered | ||||||||
| Vessel Name | Vessel Type | Delivery date | Deadweight (in metric tons) | Purchase Option(1) | ||||
| Navios Gemini | Panamax | Q4 2018 | 81,500 | No(3) | ||||
| Navios Horizon I | Panamax | Q1 2019 | 81,500 | No(3) | ||||
| Long term Bareboat Chartered-in Fleet to be delivered | ||||||||
| Vessel Name | Vessel Type | Delivery date | Deadweight (in metric tons) | Purchase Option(1) | ||||
| Navios Herakles I | Panamax | Q3 2019 | 82,000 | Yes | ||||
| Navios Felicity I | Panamax | Q4 2019 | 81,000 | Yes | ||||
| TBN | Panamax | Q4 2019 | 82,000 | Yes | ||||
| TBN | Panamax | Q1 2020 | 82,000 | Yes | ||||
| TBN | 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 sold. | ||||||||