Revenue

  • $287.5 million for H1 2019
  • $147.2 million for Q2 2019

Cash from operating activities

  • $42.7 million for H1 2019
  • $24.4 million for Q2 2019

Adjusted EBITDA (a non-GAAP measure)

  • $131.1 million for H1 2019
  • $62.6 million for Q2 2019

Fleet renewal (2017-2019YTD)

  • 26% decrease in average age
  • Stable dwt capacity

Sale of Ship Management for $20.0 Million and a Five-Year Services Agreement

MONACO, Sept. 05, 2019 (GLOBE NEWSWIRE) -- Navios Maritime Holdings Inc. (“Navios Holdings” or “the Company”) (NYSE: NM), a global seaborne shipping and logistics company, today reported financial results for the second quarter and six month period ended June 30, 2019.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results of the second quarter of 2019 for which we reported revenue of $147.2 million and Adjusted EBITDA of $62.6 million.”

Angeliki Frangou continued, “Charter rates in the dry bulk sector have been robust lately. While NM earned a TCE rate of $10,500 per day for the second quarter of 2019, the capesize 5TC rate is currently over $35,000 per day.”

HIGHLIGHTS – RECENT DEVELOPMENTS

Sale of Ship Management for $20.0 Million and a Five-Year Services Agreement

In August 2019, Navios Holdings sold its ship management division and certain general partnership interests (the “Transaction”) to N Shipmanagement Acquisition Corp. and related entities (“NSM”), affiliated with Company’s Chairman and Chief Executive Officer, Angeliki Frangou. The Company received aggregate consideration of $20.0 million (including assumption of liabilities) and new five-year service agreements under which NSM will provide technical and commercial management services at fixed rates (as described below) and administrative services, reimbursed at allocable cost.

As a result of the Transaction:

  • The Company is a holding company owning dry bulk vessels and various investments in entities owning maritime and infrastructure assets.
  • NSM owns all entities providing ship management services and employs all associated people.
  • The Company will pay a fixed rate of $3,700 per day per vessel, which will cover all technical and commercial management services and operating costs, other than dry-docking and special surveys. This rate will be fixed for a two-year period and will increase thereafter by 3% annually.
  • NSM will provide all administrative services to the Company and will be reimbursed at allocable cost.
  • NSM will own the general partner interests in Navios Maritime Containers L.P. (“Navios Containers”) and Navios Maritime Partners L.P.

The Company simultaneously entered into a secured loan agreement with NSM whereby the Company agreed to repay NSM $125.0 million (subject to post-closing adjustment) over a five-year period. Principal amount generally reflects the net amount of liabilities to the entities acquired by NSM. Of the amount owed, $47.0 million will be repayable during the first 12 months in equal quarterly installments, with the remaining principal amount repayable in equal quarterly installments over the following 48 months. In certain cases, amortization can be deferred. The loan agreement provides for interest at 5% annually, and 7% annually for deferred principal amounts.

The closing of the Transaction occurred simultaneously with the execution of the definitive transaction agreements.

The Company’s Board of Directors formed a Special Committee of independent and disinterested directors to consider the Transaction. The Special Committee, with the assistance of its independent financial and legal advisors, exclusively negotiated the terms of the transaction agreements and approved the transaction on behalf of the Board of Directors.

Pareto Securities AS acted as financial advisor and Debevoise & Plimpton LLP acted as legal counsel to the Special Committee.

Fleet Update

From the beginning of 2017 through 2019 YTD, Navios Holdings has decreased by 26% the average age of its owned fleet including long-term bareboat chartered-in vessels.

In August 2019, the Company took delivery of the Navios Herakles I, a newbuilt bareboat chartered-in Kamsarmax of 81,600 dwt.

In August 2019, the Company acquired from an unrelated third party, a previously chartered-in vessel, the Navios Victory, a 2014-built, 77,095 dwt vessel, for a total acquisition price of $14.5 million, which was paid in cash.

In July 2019, the Company agreed to sell to an unrelated third party the Navios Primavera, a 2007-built Ultra Handymax vessel of 53,464 dwt, for a sale price of $10.3 million.

Navios Holdings controls a fleet of 57 vessels (including one vessel agreed to be sold) totaling 6.0 million dwt, of which 31 are owned and 26 are chartered-in under long-term charters (collectively, the "Core Fleet"). The fleet consists of 18 Capesize, 28 Panamax, 9 Ultra-Handymax and two Handysize vessels, with an average age of 7.5 years, basis fully delivered fleet.

As of August 28, 2019, Navios Holdings has chartered-out 90.8% of available days for the remaining six months of 2019, out of which 62.7% are chartered-out on fixed rate and 28.1% on index. The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining six months of 2019 is $13,841 per day.

The above figures do not include the fleets of Navios South American Logistics Inc. (“Navios Logistics”) and 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 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 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. Following the Transaction referred above, Navios Holdings will deconsolidate Navios Containers from August 30, 2019 onwards.

Second Quarter 2019 and 2018 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The second quarter 2019 and 2018 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

       
  Three Month
Period Ended
June 30, 2019
  Three Month Period
Ended
June 30, 2019
Excluding Navios Containers
 Three Month
Period Ended
June 30, 2018 

  (unaudited) (unaudited)
(unaudited)
Revenue$147,189  $113,511 $  132,051 
Net Loss attributable to Navios Holdings’ common stockholders$(36,431) $(36,320)$(25,292)
Adjusted Net Loss attributable to Navios Holdings’ common stockholders$(4,635) (1) $(4,524) (1)$(18,697) (3)
Net cash provided by operating activities$24,353  $17,937 $11,708 
EBITDA$30,783  $18,049 $36,636 
Adjusted EBITDA$62,579  (1) $49,845  (1)$43,231  (3)
Basic Loss attributable to Navios Holdings’ common stockholders per Share(4)$(1.49) $(1.48)$(2.33)
Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share(4)$(0.54) (2) $(0.53) (2)$(1.78) (3)


(1) Adjusted EBITDA and Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the three month period ended June 30, 2019 exclude (i) $18.3 million of impairment losses due to the sale of four drybulk vessels and (ii) $13.5 million of other-than-temporary impairment (“OTTI”) loss related to our investment in an affiliate company.
(2) Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share for the three month period ended June 30, 2019 exclude the items referred in footnote (1) as well as a gain of $20.2 million related to the tender offer for the Company’s preferred stock and the conversion of accrued dividends on private preferred stock to common 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 month period ended June 30, 2018 exclude a $6.6 million impairment loss relating to the sale of one drybulk vessel.
(4) Basic and Adjusted Basic 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 month period ended June 30, 2019 was $52.9 million, as compared to $72.0 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 10.9% to $10,500 per day in the second quarter of 2019, as compared to $11,791 per day in the same period of 2018.

Revenue from the logistics business was $60.6 million for the three month period ended June 30, 2019 as compared to $60.1 million for the same period in 2018. The increase was mainly attributable to (i) a $4.5 million increase in revenue from the barge business mainly due to an increase in revenue from liquid cargo transportation, (ii) a $2.9 million increase in revenue from the cabotage business mainly due to an increase in operating days of the cabotage fleet and (iii) a $0.3 million increase in revenue from the port terminal business mainly due to an increase in the iron ore port terminal revenue. The overall increase was partially offset by a $7.2 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port's volumes of products sold.

Revenue of Navios Containers for the three month period ended June 30, 2019 was $33.7 million. Navios Containers’ results of operations were not included in the Company’s consolidated results of operations for the three month period ended June 30, 2018.

Net Loss attributable to Navios Holdings’ common stockholders was $36.4 million for the three month period ended June 30, 2019, as compared to $25.3 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 Loss attributable to Navios Holdings’ common stockholders for the three month period ended June 30, 2019 was $4.6 million, as compared to $18.7 million Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2018. This decrease in Adjusted Net Loss was mainly due to (i) a $19.4 million increase in Adjusted EBITDA, (ii) a $0.6 million decrease in amortization for deferred drydock and special survey costs, and (iii) a $0.5 million decrease in share-based compensation expense. This overall decrease of $20.5 million was partially mitigated by (i) a $4.8 million increase in depreciation and amortization, (ii) a $1.0 million increase in interest expense and finance cost, net, and (iii) a $0.6 million increase in income tax expense.

Net Income of Navios Logistics, on a standalone basis, was $9.7 million for the three month period ended June 30, 2019 as compared to $4.0 million of Net income for the same period in 2018.

Net Loss of Navios Containers, on a standalone basis, was $3.1 million for the three month period ended June 30, 2019. Navios Containers’ results of operations were not included in the Company’s consolidated results of operations for the three month period ended June 30, 2018.

Adjusted EBITDA of Navios Holdings for the three month period ended June 30, 2019 increased by $19.4 million to $62.6 million, as compared to $43.2 million for the same period in 2018. The increase in Adjusted EBITDA was primarily due to (i) a $15.1 million increase in revenue, (ii) a $10.3 million increase in other income, net, (iii) a $8.8 million decrease in time charter, voyage and logistics business expenses; (iv) a $5.7 million increase in gain on bond extinguishment, and (v) a $0.8 million decrease in net income attributable to noncontrolling interest. This overall increase of $40.7 million was partially mitigated by (i) a $18.6 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs), (ii) a $2.4 million increase in general and administrative expenses (excluding share-based compensation expenses), and (iii) a $0.3 million decrease in equity in net earnings from affiliated companies.

EBITDA of Navios Logistics, on a standalone basis, was $27.5 million for the three month period ended June 30, 2019, as compared to $22.4 million for the same period in 2018.

EBITDA of Navios Containers, on a standalone basis, was $9.8 million for the three month period ended June 30, 2019.

First Half of 2019 and 2018 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The information for the six month period ended June 30, 2019 and 2018 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

  Six Month
Period Ended
June 30, 201
9
 Six Month
Period Ended 
June 30, 2019
Excluding
Navios
Containers

  Six Month
Period Ended
June 30, 2018
  (unaudited) (unaudited)
  (unaudited)
Revenue$287,469  $221,959  $248,933 
Net Loss attributable to Navios Holdings’ common stockholders$(41,735) $(41,616) $(66,149)
Adjusted Net Loss attributable to Navios Holdings’ common stockholders$(4,408) (1) $(4,289(1) $(52,839(3)
Net cash provided by operating activities$42,676  $36,297  $29,514 
EBITDA$93,785  $68,773  $58,019 
Adjusted EBITDA$131,112  (1) $106,100 (1) $71,329  (3)
Basic Loss attributable to Navios Holdings’ common stockholders per Share(4)$(0.16) $(0.15) $(5.97)
Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share(4)$(0.73) (2) $(0.72(2) $(4.85(3)


(1) Adjusted EBITDA and Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the six month period ended June 30, 2019 exclude (i) $23.8 million of impairment losses related to the sale of five drybulk vessels and (ii) a $13.5 million OTTI loss related to our investment in an affiliate company.
(2) Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per Share for the six month period ended June 30, 2019 exclude items referred in footnote (1) as well as a gain of $44.3 million related to the tender offer of the Company’s preferred stock and the conversion of accrued dividends on private preferred stock to common 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 six month period ended June 30, 2018 exclude a $13.3 million impairment loss relating to the sale of two drybulk vessels.
(4) Basic and Adjusted Basic 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 six month period ended June 30, 2019 was $105.6 million, as compared to $136.6 million for the same period in 2018. The decrease in dry bulk revenue was mainly attributable to the decrease in TCE per day by 12.0% to $10,045 per day in the first half of 2019, as compared to $11,412 per day in the same period in 2018.

Revenue from the logistics business was $116.4 million for the six month period ended June 30, 2019 as compared to $112.3 million for the same period in 2018. The increase was mainly attributable to (i) a $6.3 million increase in revenue from the barge business mainly due to an increase in revenue from liquid and dry cargo transportation, (ii) a $4.1 million increase in revenue from the cabotage business mainly due to an increase in operating days of the cabotage fleet, and (iii) a $3.2 million increase in revenue from the port terminal business mainly due to an increase in the volumes transshipped in the grain port terminal. The overall increase was partially mitigated by a $9.5 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port's volumes of products sold.

Revenue of Navios Containers for the six month period ended June 30, 2019 was $65.5 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 six month period ended June 30, 2018.

Net Loss of Navios Holdings was $41.7 million for the six month period ended June 30, 2019, as compared to $66.1 million for the same period in 2018. Net Loss was affected by items described in the table above. Excluding these items, Adjusted Net Loss of Navios Holdings for the six month period ended June 30, 2019 was $4.4 million, as compared to $52.8 million for the same period in 2018. The $48.4 million decrease in Adjusted Net Loss was mainly due to (i) an increase in Adjusted EBITDA of $59.8 million; (ii) a decrease of $1.3 million in amortization for deferred drydock and special survey costs; and (iii) a $0.8 million decrease in share-based compensation expense. This overall decrease in Adjusted Net Loss was partially mitigated by (i) an increase in depreciation and amortization of $8.5 million; (ii) an increase in interest expense and finance cost, net of $3.6 million; and (iii) an increase in income tax expense of $1.4 million.

Net Income of Navios Logistics, on a standalone basis, was $15.0 million for the six month period ended June 30, 2019, as compared to $2.9 million for the same period in 2018.

Net Loss of Navios Containers, on a standalone basis, was $3.3 million for the six month period ended June 30, 2019. Navios Containers’ results of operations were not included in the Company’s consolidated results of operations for the six month period ended June 30, 2018.

Adjusted EBITDA of Navios Holdings for the six month period ended June 30, 2019 increased by $59.8 million to $131.1 million, as compared to $71.3 million for the same period in 2018. The $59.8 million increase in Adjusted EBITDA was primarily due to (i) a $38.6 million increase in revenue; (ii) a $21.4 million increase in bond extinguishment gains, (iii) a $20.6 million increase in other income, net, (iv) a $10.7 million decrease in time charter, voyage and logistics business expenses; and (v) a $10.5 million increase in equity in net earnings from affiliated companies. This overall increase of $101.8 million was partially mitigated by (i) a $34.7 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs), (ii) a $6.1 million increase in general and administrative expenses (excluding share-based compensation expenses), and (iii) a $1.2 million increase in net income attributable to the noncontrolling interest.

EBITDA of Navios Logistics, on a standalone basis, was $51.7 million for the six month period ended June 30, 2019, as compared to $39.2 million for the same period in 2018.

EBITDA of Navios Containers, on a standalone basis, was $21.8 million for the six month period ended June 30, 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 and six month periods ended June 30, 2019 and 2018, respectively.

  Three Month Three Month Six Month Six Month
  Period Ended Period Ended Period Ended Period Ended
  June 30, June 30, June 30, June 30,
  2019 2018
 2019 2018
  (Unaudited) (Unaudited) (Unaudited) (Unaudited)
                 
Available Days (1)  4,976   5,810   10,313   11,349 
Operating Days (2)  4,959   5,800   10,271   11,315 
Fleet Utilization (3)  99.7%  99.8%  99.6%  99.7%
Equivalent Vessels (4)  55   64   57   63 
TCE (5) $10,500  $11,791  $10,045  $11,412 


(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, September 5, 2019, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on earnings results for the second quarter and six month period ended June 30, 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: Thursday, September 5, 2019 at 8:30 am ET
Call Title: Navios Holdings Q2 2019 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 299 3302

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: 299 3302

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 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, Ultra Handymax and Handysize 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
June 30, 2019
  Three Month Period Ended
June 30, 2018
 Six Month Period Ended
June 30, 2019
 Six Month Period Ended
June 30, 2018
  (unaudited)  (unaudited) (unaudited) (unaudited)
Revenue  $147,189  $132,051  $287,469  $248,933 
Administrative fee revenue from affiliates   6,318   7,126   12,782   14,131 
Time charter, voyage and logistics business expenses   (45,089  (53,888)  (94,733  (105,383)
Direct vessel expenses(1)   (42,591  (24,533)  (82,027  (48,797)
General and administrative expenses incurred on behalf of affiliates   (6,318  (7,126)  (12,782  (14,131)
General and administrative expenses(2)   (10,444  (8,327)  (20,470  (15,254)
Depreciation and amortization   (29,269  (24,537)  (59,054  (50,603)
Interest expense and finance cost, net   (34,276  (33,253)  (68,673  (65,063)
Impairment loss/ loss on sale of vessels, net   (18,253)  (6,595)  (23,784  (13,310)
Gain on bond extinguishment    5,712   —     21,374   —  
Other income /(expense), net   8,076   (2,242)  13,465   (7,061)
Loss before equity in net earnings of affiliated companies   (18,945  (21,324)  (26,433  (56,538)
Equity in net losses of affiliated companies   (16,779  (3,025)  (12,502  (9,489)
Loss before taxes  $(35,724) $(24,349) $(38,935 $(66,027)
Income tax (expense)/ benefit   (143  502   (548  944 
Net loss   (35,867)  (23,847)  (39,483  (65,083)
Less: Net income attributable to the noncontrolling interest   (564  (1,445)  (2,252  (1,066)
Net loss attributable to Navios Holdings common stockholders  $(36,431 $(25,292) $(41,735 $(66,149)
Loss attributable to Navios Holdings common stockholders, basic and diluted  $(18,147) $(27,856) $(1,957) $(71,262)
Basic and diluted loss per share attributable to Navios Holdings common stockholders  $(1.49) $(2.33) $(0.16) $(5.97)
Weighted average number of shares, basic and diluted   12,219,750   11,942,314   12,219,817   11,942,297 
                  


(1) Includes expenses of Navios Logistics of $14.7 million and $14.6 million for the three month period ended June 30, 2019 and 2018, respectively and $27.3 million and $29.4 million for the six month period ended June 30, 2019 and 2018, respectively. Also includes expenses of Navios Containers of $16.8 million and $32.7 million for the three and six month period ended June 30, 2019, respectively.
(2) Includes expenses of Navios Logistics of $4.4 million and $4.0 million for the three month period ended June 30, 2019 and 2018, respectively and $8.1 million and $7.9 million for the six month period ended June 30, 2019 and 2018, respectively. Also includes expenses of Navios Containers of $2.6 million and $5.1 million for the three and six month period ended June 30, 2019, respectively.
   

NAVIOS MARITIME HOLDINGS INC.

Other Financial Data

    June 30, 2019  December 31, 2018
  (unaudited) (unaudited)
ASSETS        
Cash and cash equivalents, including restricted cash $122,076 $150,774
Vessels, port terminals and other fixed assets, net  1,862,408  1,898,455
Goodwill and other intangibles  285,386  299,273
Operating lease assets  335,847  — 
Other current and non-current assets  332,464  333,994
Total assets $2,938,181 $2,682,496
       
   
LIABILITIES AND EQUITY      
Long-term, debt, including current portion  $553,335 $543,899
Senior and ship mortgage notes, net  1,237,470  1,272,108
Operating lease liabilities, current portion  92,488  — 
Operating lease liabilities, net of current portion  256,073  — 
Other current and non-current liabilities  333,783  344,809
Total stockholders’ equity  465,032  521,680
Total liabilities and stockholders’ equity $2,938,181 $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

 June 30, June 30,
Three Month Period Ended2019 2018
(in thousands of U.S. dollars)(unaudited)  (unaudited)
      
Net cash provided by operating activities$  24,353  $11,708 
Net (decrease)/ increase in operating assets   (7,603)  5,711 
Net decrease/(increase) in operating liabilities 32,615   (146)
Net interest cost   34,276   33,253 
Deferred finance charges   (2,335)  (2,003)
Provision for losses on accounts receivable   (240)  (379)
Equity in affiliates, net of dividends received   (4,234)  (4,384)
Payments for drydock and special survey costs   2,794   916 
Noncontrolling interest   (564)  (1,445)
Impairment loss on investment in affiliate   (13,543)  —  
Impairment loss/ loss on sale of vessels, net   (18,253)   (6,595)
Amortization of operating lease assets   (22,195)   —  
Gain on bond extinguishment 5,712    —  
EBITDA$  30,783   $36,636 
Impairment loss/ loss on sale of vessels, net   18,253   6,595 
Impairment loss on investment in affiliate 13,543   —  
Adjusted EBITDA$62,579  $43,231 


Three Month Period Ended
(in thousands of U.S. dollars)
June 30,
2019
 June 30,
2018
 (unaudited) (unaudited)
Net cash provided by operating activities$   24,353  $   11,708 
Net cash used in investing activities$(38,099) $(5,250)
Net cash provided by/ (used in) financing activities$   6,464  $(6,879)


Adjusted EBITDA breakdown     
      
 June 30, June 30,
Three Month Period Ended2019 2018
(in thousands of U.S. dollars)(unaudited) (unaudited)
      
Core shipping operations$  29,100  $  25,296 
Navios Logistics (including noncontrolling interest)   23,981     20,960 
Navios Containers (including noncontrolling interest)   12,734   —  
Equity in net losses of affiliated companies   (3,236)    (3,025)
Adjusted EBITDA$  62,579   $  43,231  
        

Navios Logistics EBITDA Reconciliation to Net Income

 June 30, June 30,
Three Month Period Ended2019 2018
(in thousands of U.S. dollars)(unaudited) (unaudited)
Net income$9,696 $3,994 
Depreciation and amortization 7,310  7,152 
Amortization of deferred drydock and special survey costs 1,132  1,831 
Interest expense and finance cost, net 9,265  9,997 
Income tax expense/(benefit) 85  (569)
EBITDA$27,488 $22,405 
       

Navios Containers Reconciliation of EBITDA to Cash from Operations

 June 30,
2019
Three Month Period Ended
(in thousands of U.S. dollars)(unaudited)
Net cash provided by operating activities$  6,418 
Net decrease in operating assets  (1,209)
Net decrease in operating liabilities   269 
Net interest cost   4,113 
Deferred finance charges  (267)
Payments for drydock and special survey costs   467 
EBITDA$9,791 
    

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

 June 30,  June 30,
Six Month Period Ended2019 2018
(in thousands of U.S. dollars)(unaudited)  (unaudited)
      
Net cash provided by operating activities$  42,676  $29,514 
Net increase in operating assets 7   9,333 
Net decrease/ (increase) in operating liabilities 45,833   (21,781)
Net interest cost   68,673   65,063 
Deferred finance charges   (4,192)  (3,645)
Provision for losses on accounts receivable   (816)  (812)
Equity in affiliates, net of dividends received   (994)  (11,321)
Payments for drydock and special survey costs   6,917   6,016 
Noncontrolling interest   (2,252)  (1,066)
Other gain on assets —    28 
Impairment loss/ loss on sale of vessels, net   (23,784)  (13,310)
Gain on bond extinguishment   21,374   —  
Amortization of operating lease asset   (46,114)   
Impairment loss on investment in affiliate   (13,543)   
EBITDA$  93,785   $ 58,019 
Impairment loss/ loss on sale of vessels, net 23,784   13,310 
Impairment loss on investment in affiliate 13,543   —  
Adjusted EBITDA$  131,112   $ 71,329 


Six Month Period EndedJune 30,
2019
 June 30,
2018
(in thousands of U.S. dollars)(unaudited) (unaudited)
    
Net cash provided by operating activities$  42,676  $   29,514 
Net cash used in investing activities$(44,705) $(22,750)
Net cash used in financing activities$(26,669) $(19,522)


Adjusted EBITDA breakdown     
      
 June 30, June 30,
Six Month Period Ended2019 2018
(in thousands of U.S. dollars)(unaudited) (unaudited)
      
Core shipping operations$  58,835 $  42,673 
Navios Logistics (including noncontrolling interest)   46,224    38,145 
Navios Containers (including noncontrolling interest)   25,012   
Equity in net earnings/(losses) of affiliated companies   1,041    (9,489)
Adjusted EBITDA$  131,112  $  71,329  
       

Navios Logistics EBITDA Reconciliation to Net Income

 June 30, June 30,
Six Month Period Ended2019 2018
(in thousands of U.S. dollars)(unaudited) (unaudited)
Net income$15,001 $2,947 
Depreciation and amortization 14,656  14,380 
Amortization of deferred drydock and special survey costs 2,458  3,721 
Interest expense and finance cost, net 19,103  19,242 
Income tax expense/ (benefit) 432   (1,079)
EBITDA$51,650 $39,211 
       

Navios Containers Reconciliation of EBITDA to Cash from Operations

 June 30,
2019
Six Month Period Ended
(in thousands of U.S. dollars)(unaudited)
Net cash provided by operating activities$6,381 
Net increase in operating assets 2,656 
Net decrease in operating liabilities 2,287 
Net interest cost 7,666 
Deferred finance charges (326)
Payments for drydock and special survey costs 3,174 
EBITDA$21,838 
    


EXHIBIT II

Owned Vessels

Vessel Name Vessel Type Year Built Deadweight
(in metric tons)
Navios Serenity Handysize 2011 34,690
Navios Hios Ultra Handymax 2003 55,180
Navios Kypros Ultra Handymax 2003 55,222
Navios Astra Ultra Handymax 2006 53,468
Navios Primavera(1) 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 Victory Panamax 2014 77,095
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
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


(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.

Long-term Bareboat Chartered-in Fleet in Operation 

Vessel Name Vessel Type Year
Built
 Deadweight
(in metric tons)
 Purchase
Option
Navios Herakles I Panamax 2019 81,600 Yes

Long-term Bareboat Chartered-in Fleet to be delivered

Vessel Name Vessel Type Delivery date Deadweight
(in metric tons)
 Purchase
Option(1)
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.