Revenue
- $482.4 million for FY 2019
- $118.9 million for Q4 2019
Cash from operating activities
- $96.1 million for FY 2019
- $15.3 million for Q4 2019
Adjusted EBITDA (a non-GAAP measure)
- $303.8 million for FY 2019
- $74.7 million for Q4 2019
Fleet update:
- Delivery of four vessels with an average age of 2.2 years
° Two Capesize vessels acquired
° Two Kamsarmax vessels delivered (bareboat leases)
- Sold three vessels with an average age of 17.3 years
° $23.6 million total expected gross proceeds
Liquidation of Navios Europe I
- $13.4 million cash received from liquidation in December 2019
MONACO, Feb. 19, 2020 (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 fourth quarter and year ended December 31, 2019.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results of the fourth quarter and full year of 2019. For the fourth quarter of 2019, we reported revenue of $118.9 million and Adjusted EBITDA of $74.7 million. For the full year of 2019, we reported revenue of $482.4 million and Adjusted EBITDA of $303.8 million.”
Angeliki Frangou continued, “Charter rates in the drybulk market are depressed due to seasonality and uncertainty related to the coronavirus. We anticipate continued weakness for the first half of 2020, with growth accelerating in the second half of the year as China returns more fully to the global market.”
HIGHLIGHTS – RECENT DEVELOPMENTS
Agreement to Liquidate Navios Europe Inc.
On November 22, 2019, an agreement was reached to liquidate Navios Europe Inc. (“Navios Europe I”). As a result of this liquidation, Navios Holdings received the outstanding receivable amount of $13.4 million, in December 2019.
Fleet Update
Acquisition of two Capesize vessels
In January 2020, the Company acquired from an unrelated third party, a previously chartered-in vessel, the Dream Canary, a 2015-built, 180,528 dwt vessel, for a total acquisition price of $34.9 million, which was paid in cash. The acquisition was financed through a sale and leaseback transaction with unrelated third party. The sale and leaseback transaction has (a) an average amortization profile of approximately 16.2 years on an age-adjusted basis, (b) annual interest of LIBOR plus an estimated effective interest rate of 316 bps and (c) a term of 12 years.
In February 2020, the Company agreed to acquire Dream Coral, a 2015-built, 181,249 dwt chartered-in vessel for an estimated purchase price ranging from $36.5 million to $36.7 million depending on the actual delivery date. The acquisition is expected to be completed in the first quarter of 2020 and will be financed through a sale and leaseback transaction with unrelated third party. The sale and leaseback transaction has (a) an average amortization profile of approximately 16.6 years on an age-adjusted basis, (b) annual interest of LIBOR plus an estimated effective interest rate of 311 bps and (c) a term of 12 years.
Delivery of two Kamsarmax vessels
In November 2019, the Company took delivery of the Navios Uranus, a newbuilt bareboat chartered-in Kamsarmax of 81,516 dwt.
In January 2020, the Company took delivery of the Navios Felicity I, a newbuilt bareboat chartered-in Kamsarmax of 81,946 dwt.
Sale of three vessels
In January and February, 2020, Navios Holdings sold three vessels, the Navios Hios, a 2003-built Ultra Handymax vessel of 55,180 dwt, the Navios Kypros, a 2003-built Ultra Handymax vessel of 55,222 dwt, and the Navios Star, a 2002-built Panamax vessel of 76,662 dwt to unrelated third parties. Gross proceeds are expected to be $23.6 million, including insurance proceeds covering unrepaired damages plus expenses (subject to applicable deductibles and other customary limitations). The Navios Hios and the Navios Kypros have already been delivered to the buyers and the Navios Star is expected to be delivered in the second quarter of 2020.
Debt Update
In December 2019, the Navios Logistics Secured Loan facility was increased by $20.0 million, with the additional principal amount used to repurchase the Ship Mortgage Notes (“the 2022 Notes”). As of December 31, 2019, $69.3 million was drawn under this facility, and all the 2022 Notes that have been repurchased under this facility have been pledged as collateral to this facility.
Fleet statistics
Navios Holdings controls a fleet of 53 vessels (including one vessel agreed to be sold) totaling 5.7 million dwt, of which 35 are owned (including 5 bareboat-in vessels) and 18 are chartered-in under long-term charters (collectively, the "Core Fleet"). The fleet consists of 17 Capesize, 28 Panamax, six Ultra-Handymax and two Handysize vessels, with an average age of 7.5 years, basis fully delivered fleet.
As of February 3, 2020, Navios Holdings has chartered-out 76.8% of available days of 2020. Of these available days, 18.9% are chartered-out on fixed rate and 57.9% are chartered-out on index. The average contracted daily charter-in rate for the long-term charter-in vessels is $13,451 per day.
The above figures do not include the fleets of Navios South American Logistics Inc. (“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 fleets of Navios Logistics.
Earnings Highlights
EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Earnings/(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 Earnings/(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 sale of Navios Containers general partnership interest effected on August 30, 2019, Navios Holdings deconsolidated Navios Containers from that date onwards. The results of operations of Navios Containers for the periods from January 1, 2019 to August 30, 2019 and from November 30, 2018 to December 31, 2018 consolidated under Navios Holdings, have been reported as discontinued operations for all periods presented.
Fourth Quarter 2019 and 2018 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The fourth quarter 2019 and 2018 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
|
|
Three Month Period
Ended
December 31, 2019 |
|
|
|
Three Month Period
Ended
December 31, 2018 |
|
|
|
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
|
|
|
| Revenue (4) |
$ |
118,881 |
|
|
|
$ |
115,300 |
|
|
| Net Loss attributable to Navios Holdings’ common stockholders |
$ |
(111,236 |
) |
|
|
$ |
(200,753 |
) |
|
| Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders |
$ |
19,413 |
|
(1) |
|
$ |
(19,707 |
) |
(3) |
| Net cash provided by operating activities |
$ |
15,319 |
|
|
|
$ |
16,046 |
|
|
| EBITDA |
$ |
(55,915 |
) |
|
|
$ |
(136,297 |
) |
|
| Adjusted EBITDA |
$ |
74,734 |
|
(1) |
|
$ |
45,501 |
|
(2) |
| Basic Loss attributable to Navios Holdings’ common stockholders per share |
$ |
(8.94 |
) |
|
|
$ |
(16.93 |
) |
|
| Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per share |
$ |
1.44 |
|
(1) |
|
$ |
(1.85 |
) |
(3) |
(1) Adjusted EBITDA, Adjusted Net Income and Adjusted Basic Earnings attributable to Navios Holdings’ common stockholders per share for the three month period ended December 31, 2019 exclude a $130.6 million impairment loss relating to drybulk vessels.
(2) Adjusted EBITDA for the three month period ended December 31, 2018 excludes (i) a $184.6 million impairment loss relating to drybulk vessels, (ii) a $55.5 million other-than-temporary impairment (“OTTI”) loss relating to our investment in an affiliate company and (iii) a $58.3 million bargain gain upon obtaining control over Navios Containers.
(3) 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 December 31, 2018 exclude the items referred in footnote (2) as well as $0.8 million of net income from discontinued operations of Navios Containers.
(4) Revenue revised to reflect the revenue of Navios Containers as net (loss)/income from discontinued operations of Navios Containers for all periods presented.
Revenue from dry bulk vessel operations for the three month period ended December 31, 2019 decreased by $4.8 million, or 6.3%, to $71.1 million, as compared to $75.9 million for the same period during 2018. The decrease in dry bulk revenue was mainly attributable to a decrease in available days by 18.8%, due to the vessels sold and certain charter-in vessels that were redelivered, partially mitigated by an increase in TCE per day by 14.3% to $14,894 per day in the three month period ended December 31, 2019 as compared to $13,033 per day in the same period in 2018.
Revenue from the logistics business was $47.8 million for the three month period ended December 31, 2019 as compared to $39.4 million for the same period in 2018. The increase was mainly attributable to (i) a $14.6 million increase in revenue from the port terminal business mainly due to higher volumes transshipped in the grain port terminal as well as higher revenue in the iron ore port terminal compared to the three month period ended December 31, 2018 as iron ore port terminal operations were partially interrupted from a fire incident in 2018, and (ii) a $3.8 million increase in revenue from the barge business mainly due to higher volumes of liquid and dry cargo transported. The overall increase was partially mitigated by (i) a $8.6 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port's volumes of products sold, and (ii) a $1.4 million decrease in revenue from the cabotage business mainly due to less spot trips performed.
Revenue of Navios Containers for the period from November 30, 2018 (date of obtaining control) to December 31, 2018 was $12.1 million.
Net Loss attributable to Navios Holdings’ common stockholders was $111.2 million for the three month period ended December 31, 2019, as compared to $200.8 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 month period ended December 31, 2019 was $19.4 million, as compared to $19.7 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 $33.5 million increase in Adjusted EBITDA (excluding $4.3 million of Adjusted EBITDA incurred in the fourth quarter ended December 31, 2018 from consolidating Navios Containers); (ii) a $4.9 million decrease in depreciation and amortization from continuing operations; (iii) a $0.4 million decrease in share-based compensation expense; (iv) a $0.4 million decrease in amortization for deferred drydock and special survey costs from continuing operations and (v) $0.7 million of minority interest of Navios Containers for the period from November 30, 2018 to December 31, 2018. This overall increase of $39.9 million was partially mitigated by (i) a $0.4 million increase in interest expense and finance cost, net from continuing operations and (ii) a $0.4 million increase in income tax expense from continuing operations.
Net Income of Navios Logistics, on a standalone basis, was $2.8 million for the three month period ended December 31, 2019 as compared to $2.8 million of Net Loss for the same period in 2018.
Net Income of Navios Containers, on a standalone basis, was $0.8 million for the period from November 30, 2018 (date of obtaining control) to December 31, 2018.
Adjusted EBITDA of Navios Holdings for the three month period ended December 31, 2019 increased by $29.2 million to $74.7 million, as compared to $45.5 million for the same period in 2018. The increase in Adjusted EBITDA was primarily due to (i) a $21.7 million increase in equity in net earnings from affiliated companies, (ii) a $13.7 million gain on bond extinguishment, (iii) a $10.9 million decrease in time charter, voyage and logistics business expenses from continuing operations and $0.5 million time charter, voyage and logistics business expenses of Navios Containers for the period from November 30, 2018 to December 31, 2018, (iv) $5.3 million direct vessel expenses of Navios Containers (excluding the amortization of deferred drydock and special survey costs) for the period from November 30, 2018 to December 31, 2018, (v) a $3.6 million increase in revenue from continuing operations, (vi) $0.9 million general and administrative expenses of Navios Containers for the period from November 30, 2018 to December 31, 2018 and (vii) $0.3 million other expense, net of Navios Containers for the period from November 30, 2018 to December 31, 2018. This overall increase of $56.9 million was partially mitigated by (i) $12.1 million revenue of Navios Containers for the period from November 30, 2018 to December 31, 2018, (ii) a $2.9 million increase in direct vessel expenses from continuing operations (excluding the amortization of deferred drydock and special survey costs), (iii) a $6.0 million increase in general and administrative expenses (excluding share-based compensation expenses) from continuing operations, (iv) a $5.4 million decrease in other income from continuing operations and (v) a $1.3 million increase in net income attributable to noncontrolling interest. Excluding Navios Containers for the consolidated period from November 30, 2018 to December 31, 2018 of $4.3 million, the increase in Adjusted EBITDA was $33.5 million.
EBITDA of Navios Logistics, on a standalone basis, was $19.8 million for the three month period ended December 31, 2019, as compared to $16.4 million for the same period in 2018.
Year Ended December 31, 2019 and 2018 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The information for the year ended December 31, 2019 and 2018 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
|
|
Year Ended
December 31, 2019 |
|
|
|
Year Ended
December 31, 2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
| Revenue (6) |
$ |
482,449 |
|
|
|
|
$ |
505,686 |
|
|
| Net Loss attributable to Navios Holdings’ common stockholders |
$ |
(192,110 |
) |
|
|
|
$ |
(268,718 |
) |
|
| Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders |
$ |
53,949 |
(2) |
|
|
|
$ |
(71,602 |
)(5) |
|
| Net cash provided by operating activities |
$ |
96,112 |
|
|
|
|
$ |
55,637 |
|
|
| EBITDA |
$ |
61,881 |
|
|
|
|
$ |
(18,231 |
) |
|
| Adjusted EBITDA |
$ |
303,822 |
(1) |
|
|
|
$ |
179,637 |
(4) |
|
| Basic Loss attributable to Navios Holdings’ common stockholders per share |
$ |
(12.43 |
) |
|
|
|
$ |
(23.33 |
) |
|
| Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per share |
$ |
3.79 |
(3) |
|
|
|
$ |
(6.84 |
)(5) |
|
(1) Adjusted EBITDA for the year ended December 31, 2019 excludes (i) a $156.1 million of impairment loss relating to drybulk vessels, (ii) a $61.7 million loss on loss of control of Navios Containers, (iii) a $13.5 million of OTTI loss related to our investment in an affiliate company, and (iv) a $10.6 million write-off of intangible assets incurred by one of our affiliates.
(2) Adjusted Net Income attributable to Navios Holdings’ common stockholders for the year ended December 31, 2019 excludes items referred in footnote (1) as well as a $4.1 million net loss from discontinued operations of Navios Containers.
(3) Adjusted Basic Earnings attributable to Navios Holdings’ common stockholders per share for the year ended December 31, 2019 excludes items referred in footnotes (1) and (2) as well as a gain of $45.7 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.
(4) Adjusted EBITDA for the year ended December 31, 2018 excludes (i) a $200.7 million of impairment loss relating to drybulk vessels; (ii) a $55.5 million OTTI loss relating to our investment in an affiliate company; and (iii) a $58.3 million bargain gain upon obtaining control over Navios Containers.
(5) Adjusted Net Loss attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share for the year ended December 31, 2018 excludes items referred in footnote (4) as well as $0.8 million of net income from discontinued operations of Navios Containers.
(6) Revenue revised to reflect the revenue of Navios Containers as net (loss)/income from discontinued operations of Navios Containers for all periods presented.
Revenue from dry bulk vessel operations for the year ended December 31, 2019 decreased by $43.8 million, or 14.7%, to $254.2 million, as compared to $298.0 million for the same period in 2018. The decrease in dry bulk revenue was mainly attributable to a decrease in available days by 14.0%, due to the vessels sold and certain charter-in vessels that were redelivered. The TCE per day amounted to $12,519 per day in the year ended December 31, 2019 as compared to $12,534 per day in the same period in 2018.
Revenue from the logistics business was $228.3 million for the year ended December 31, 2019 as compared to $207.6 million for the same period in 2018. The increase was mainly attributable to (i) a $25.9 million increase in revenue from the port terminal business mainly due to higher volumes transshipped in the grain port terminal as well as higher revenue in the iron ore port terminal compared to the year ended December 31, 2018 as iron ore port terminal operations were partially interrupted from a fire incident in 2018, (ii) a $13.5 million increase in revenue from the barge business mainly due to higher volumes of liquid and dry cargo transported, and (iii) a $4.4 million increase in revenue from the cabotage business mainly due to more operating days of the cabotage fleet. The overall increase was partially mitigated by a $23.1 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 period from January 1, 2019 to August 30, 2019 (deconsolidation effective date) was $89.9 million, as compared to $12.1 million for the period from November 30, 2018 to December 31, 2018 and consisted of time charter revenues.
Net Loss of Navios Holdings was $192.1 million for year ended December 31, 2019, as compared to $268.7 million Net Loss for the same period in 2018. Net Loss was affected by items described in the table above. Excluding these items, Adjusted Net Income of Navios Holdings for the year ended December 31, 2019 was $53.9 million, as compared to $71.6 million Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2018. The $125.5 million increase in Adjusted Net Income was mainly due to (i) an increase in Adjusted EBITDA of $94.6 million (excluding $29.6 million increase of Adjusted Ebitda of Navios Containers incurred for the period from January 1, 2019 to August 30, 2019, as compared to the period from November 30, 2018 to December 31, 2018); (ii) a decrease of $2.7 million in amortization for deferred drydock and special survey costs from continuing operations; (iii) a $1.7 million decrease in share-based compensation expense; (iv) a decrease in depreciation and amortization from continuing operations of $18.1 million; (v) a decrease in interest expense and finance cost, net from continuing operations of $6.4 million; and (vi) a $4.7 increase in minority interest of Navios Containers for the period from January 1, 2019 to August 30, 2019, as compared to the period from November 30, 2018 to December 31, 2018. This overall increase in Adjusted Net Income was partially mitigated by an increase in income tax expense of $2.7 million from continuing operations.
Net Income of Navios Logistics, on a standalone basis, was $32.1 million for the year ended December 31, 2019, as compared to $6.9 million for the same period in 2018.
Net Loss of Navios Containers, on a standalone basis, was $4.1 million for the period from January 1, 2019 to August 30, 2019 (deconsolidation effective date), as compared to $0.8 million for the period from November 30, 2018 (date of gaining control) to December 31, 2018.
Adjusted EBITDA of Navios Holdings for the year ended December 31, 2019 increased by $124.2 million to $303.8 million, as compared to $179.6 million for the same period in 2018. The $124.2 million increase in Adjusted EBITDA was primarily due to (i) a $77.8 million increase in revenue of Navios Containers for the period from January 1, 2019 to August 30, 2019, as compared to the period from November 30, 2018 to December 31, 2018; (ii) a $40.9 million increase in bond extinguishment gains; (iii) a $27.3 million increase in other income, net from continuing operations; (iv) a $28.6 million decrease in time charter, voyage and logistics business expenses from continuing operations; (v) a $9.8 million gain on sale of business recorded in the year ended December 31, 2019; and (vi) a $39.6 million increase in equity in net earnings from affiliated companies. This overall increase of $224.0 million was partially mitigated by (i) a $23.3 million decrease in revenue from continuing operations; (ii) a $7.6 million increase in direct vessel expenses from continuing operations (excluding the amortization of deferred drydock and special survey costs) and a $38.2 million increase in direct vessel expenses of Navios Containers (excluding the amortization of deferred drydock and special survey costs) for the period from January 1, 2019 to August 30, 2019, as compared to the period from November 30, 2018 to December 31, 2018; (iii) a $11.3 million increase in general and administrative expenses (excluding share-based compensation expenses) from continuing operations and a $5.8 million increase in general and administrative expenses of Navios Containers for the period from January 1, 2019 to August 30, 2019, as compared to the period from November 30, 2018 to December 31, 2018; (iv) a $4.5 million increase in net income attributable to the non-controlling interest; (v) a $3.5 million increase in time charter and voyage expenses of Navios Containers for the period from January 1, 2019 to August 30, 2019, as compared to the period from November 30, 2018 to December 31, 2018; and (vi) a $5.6 million increase in other expense, net of Navios Containers for the period from January 1, 2019 to August 30, 2019, as compared to the period from November 30, 2018 to December 31, 2018. Excluding the increase of $29.6 million of Navios Containers for the consolidated periods from January 1, 2019 to August 30, 2019 and from November 30, 2018 to December 31, 2018 the increase in Adjusted EBITDA was $94.6 million.
EBITDA of Navios Logistics, on a standalone basis, was $103.9 million for the year ended December 31, 2019, as compared to $81.1 million for the same period in 2018.
Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of Navios Holdings' dry bulk operations (excluding the Navios Logistics’ fleets) and its fleet performance for the three month period and year ended December 31, 2019 and 2018, respectively.
|
|
Three Month |
|
Three Month |
|
Year |
|
Year |
|
|
|
Period Ended |
|
Period Ended |
|
Ended |
|
Ended |
|
|
|
December 31, |
|
December 31, |
|
December 31, |
|
December 31, |
|
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
| Available Days (1) |
|
|
4,641 |
|
|
|
5,716 |
|
|
|
19,738 |
|
|
|
22,938 |
|
|
| Operating Days (2) |
|
|
4,621 |
|
|
|
5,705 |
|
|
|
19,613 |
|
|
|
22,855 |
|
|
| Fleet Utilization (3) |
|
|
99.6 |
% |
|
|
99.8 |
% |
|
|
99.4 |
% |
|
|
99.6 |
% |
|
| Equivalent Vessels (4) |
|
|
50 |
|
|
|
62 |
|
|
|
54 |
|
|
|
63 |
|
|
| TCE (5) |
|
$ |
14,894 |
|
|
$ |
13,033 |
|
|
$ |
12,519 |
|
|
$ |
12,534 |
|
|
| (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, February 19, 2020, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on earnings results for the fourth quarter and year ended December 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: Wednesday, February 19, 2020 at 8:30 am ET
Call Title: Navios Holdings Q4 2019 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 533 9615
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: 533 9615
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 Maritime Acquisition Corporation (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
December 31,
2019 |
|
|
Three Month
Period Ended
December 31,
2018 |
|
Year
Ended
December 31,
2019 |
|
Year
Ended
December 31,
2018 |
|
|
(unaudited) |
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
| Revenue |
|
|
$ |
118,881 |
|
|
|
$ |
115,300 |
|
|
$ |
482,449 |
|
|
$ |
505,686 |
|
Administrative fee revenue from
affiliates |
|
|
|
__ |
|
|
|
6,905 |
|
|
|
16,991 |
|
|
|
28,393 |
|
Time charter, voyage and logistics
business expenses |
|
|
|
(39,519 |
) |
|
|
|
(50,424 |
) |
|
|
(177,216 |
) |
|
|
(205,787 |
) |
| Direct vessel expenses(1) |
|
|
|
(25,029 |
) |
|
|
|
(22,505 |
) |
|
|
(101,467 |
) |
|
|
(96,261 |
) |
General and administrative expenses
incurred on behalf of affiliates |
|
|
|
__ |
|
|
|
(6,905 |
) |
|
|
(16,991 |
) |
|
|
(28,393 |
) |
| General and administrative expenses(2) |
|
|
|
(10,495 |
) |
|
|
|
(4,883 |
) |
|
|
(36,194 |
) |
|
|
(26,640 |
) |
| Depreciation and amortization |
|
|
|
(19,601 |
) |
|
|
|
(24,532 |
) |
|
|
(81,723 |
) |
|
|
(99,779 |
) |
| Interest expense and finance cost, net |
|
|
|
(31,781 |
) |
|
|
|
(31,371 |
) |
|
|
(122,817 |
) |
|
|
(129,168 |
) |
Impairment loss/ loss on sale of vessels,
net |
|
|
|
(130,649 |
) |
|
|
|
(184,587 |
) |
|
|
(156,106 |
) |
|
|
(200,657 |
) |
| Gain on bond extinguishment |
|
|
|
13,697 |
|
|
|
|
__ |
|
|
47,430 |
|
|
|
6,464 |
|
| Gain on sale of business |
|
|
|
__ |
|
|
|
__ |
|
|
9,802 |
|
|
|
__ |
Bargain gain upon obtaining
control/(Loss on loss of control) |
|
|
|
__ |
|
|
|
58,313 |
|
|
|
(61,741 |
) |
|
|
58,313 |
|
| Other income, net |
|
|
|
4,226 |
|
|
|
|
9,591 |
|
|
|
27,909 |
|
|
|
663 |
|
Loss before equity in net earnings of
affiliated companies |
|
|
|
(120,270 |
) |
|
|
|
(135,098 |
) |
|
|
(169,674 |
) |
|
|
(187,166 |
) |
Equity in net earnings/(losses) of
affiliated companies |
|
|
|
10,700 |
|
|
|
|
(66,485 |
) |
|
|
(9,185 |
) |
|
|
(80,205 |
) |
| Loss before taxes |
|
|
$ |
(109,570 |
) |
|
|
$ |
(201,583 |
) |
|
$ |
(178,859 |
) |
|
$ |
(267,371 |
) |
| Income tax (expense)/ benefit |
|
|
|
(643 |
) |
|
|
|
(216 |
) |
|
|
(1,475 |
) |
|
|
1,108 |
|
| Net loss from continuing operations |
|
|
|
(110,213 |
) |
|
|
|
(201,799 |
) |
|
|
(180,334 |
) |
|
|
(266,263 |
) |
Net income/(loss) from discontinued
operations |
|
|
|
__ |
|
|
|
752 |
|
|
|
(4,118 |
) |
|
|
752 |
|
| Net loss |
|
|
|
(110,213 |
) |
|
|
|
(201,047 |
) |
|
|
(184,452 |
) |
|
|
(265,511 |
) |
Less: Net (income)/loss attributable to
the noncontrolling interest |
|
|
|
(1,023 |
) |
|
|
|
294 |
|
|
|
(7,658 |
) |
|
|
(3,207 |
) |
Net loss attributable to Navios
Holdings common stockholders |
|
|
$ |
(111,236 |
) |
|
|
$ |
(200,753 |
) |
|
$ |
(192,110 |
) |
|
$ |
(268,718 |
) |
Loss attributable to Navios Holdings
common stockholders, basic and
diluted |
|
|
|
(112,528 |
) |
|
|
$ |
(203,315 |
) |
|
$ |
(153,608 |
) |
|
$ |
(278,959 |
) |
Basic and diluted loss per share
attributable to Navios Holdings
common stockholders |
|
|
$ |
(8.94 |
) |
|
|
$ |
(16.93 |
) |
|
$ |
(12.43 |
) |
|
$ |
(23.33 |
) |
Weighted average number of shares,
basic and diluted |
|
|
|
12,592,465 |
|
|
|
|
12,008,386 |
|
|
|
12,356,024 |
|
|
|
11,958,959 |
|
(1) Includes expenses of Navios Logistics of $12.8 million and $12.9 million for the three month period ended December 31, 2019 and 2018, respectively and $53.9 million and $56.2 million for the year ended December 31, 2019 and 2018, respectively.
(2) Includes expenses of Navios Logistics of $4.5 million and $3.8 million for the three month period ended December 31, 2019 and 2018, respectively and $17.4 million and $15.1 million for the year ended December 31, 2019 and 2018, respectively.
|
Period from
January 1 to
August 30, |
|
Period from
November 30 to
December 31, |
| Net (loss)/income from discontinued operations |
2019 |
|
|
2018 |
| (in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| Revenue |
$ |
89,925 |
|
|
$ |
12,053 |
|
| Time charter, voyage and port terminal expenses |
|
(3,976 |
) |
|
|
(546 |
) |
| Direct vessel expenses |
|
(44,088 |
) |
|
|
(5,282 |
) |
| General and administrative expenses |
|
(6,706 |
) |
|
|
(873 |
) |
| Depreciation and amortization |
|
(22,858 |
) |
|
|
(3,060 |
) |
| Interest expense and finance cost, net |
|
(10,519 |
) |
|
|
(1,204 |
) |
| Other expense, net |
|
(5,896 |
) |
|
|
(336 |
) |
| Net (loss)/income from discontinued operations |
$ |
(4,118 |
) |
|
$ |
752 |
|
NAVIOS MARITIME HOLDINGS INC.
Other Financial Data
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2019
|
|
|
|
December 31,
2018
|
|
| ASSETS |
|
|
|
|
|
|
(unaudited) |
|
|
|
(unaudited) |
|
| Cash and cash equivalents, including restricted cash |
|
|
|
|
|
$ |
78,727 |
|
|
$ |
150,774 |
|
| Vessels, port terminals and other fixed assets, net |
|
|
|
|
|
|
1,281,018 |
|
|
|
1,898,455 |
|
| Goodwill and other intangibles |
|
|
|
|
|
|
264,490 |
|
|
|
299,273 |
|
| Operating lease assets |
|
|
|
|
|
|
264,005 |
|
|
|
__ |
|
| Other current and non-current assets |
|
|
|
|
|
|
254,615 |
|
|
|
333,994 |
|
| Total assets |
|
|
|
|
|
$ |
2,142,855 |
|
|
$ |
2,682,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
| Long-term debt, including current portion |
|
|
|
|
|
$ |
390,405 |
|
|
$ |
543,899 |
|
| Senior and ship mortgage notes, net |
|
|
|
|
|
|
1,170,679 |
|
|
|
1,272,108 |
|
| Operating lease liabilities, current portion |
|
|
|
|
|
|
87,103 |
|
|
|
__ |
|
| Operating lease liabilities, net of current portion |
|
|
|
|
|
|
226,329 |
|
|
|
__ |
|
| Other current and non-current liabilities |
|
|
|
|
|
|
109,314 |
|
|
|
344,809 |
|
| Total stockholders’ equity |
|
|
|
|
|
|
159,025 |
|
|
|
521,680 |
|
| Total liabilities and stockholders’ equity |
|
|
|
|
|
$ |
2,142,855 |
|
|
$ |
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 Earnings/(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/businesses, on loss of control 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 Earnings/(Loss) attributable to Navios Holdings’ common stockholders Per share is defined as Adjusted Net Income/(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 through deconsolidation) 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
|
December 31, |
|
December 31, |
| Three Month Period Ended |
2019 |
|
|
2018 |
|
| (in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| Net cash provided by operating activities |
$ |
15,319 |
|
|
$ |
16,046 |
|
| Net (decrease)/ increase in operating assets |
|
(23,271 |
) |
|
|
11,890 |
|
| Net decrease/(increase) in operating liabilities |
|
21,509 |
|
|
|
(3,567 |
) |
| Net interest cost |
|
31,781 |
|
|
|
32,575 |
|
| Deferred finance charges |
|
(1,949 |
) |
|
|
(1,917 |
) |
| Provision for losses on accounts receivable |
|
— |
|
|
|
(157 |
) |
| Equity in affiliates, net of dividends received |
|
9,782 |
|
|
|
(12,095 |
) |
| Payments for drydock and special survey costs |
|
8,889 |
|
|
|
1,566 |
|
| Noncontrolling interest |
|
(1,023 |
) |
|
|
294 |
|
| Impairment loss/ loss on sale of vessels, net |
|
(130,649 |
) |
|
|
(184,587 |
) |
| Gain on bond extinguishment |
|
13,697 |
|
|
|
— |
|
| Gain on sale of assets |
|
— |
|
|
|
866 |
|
| Bargain gain upon obtaining control |
|
— |
|
|
|
58,313 |
|
| Impairment loss on investment in affiliate |
|
— |
|
|
|
(55,524 |
) |
| EBITDA |
$ |
(55,915 |
) |
|
$ |
(136,297 |
) |
| Impairment loss/ loss on sale of vessels, net |
|
130,649 |
|
|
|
184,587 |
|
| Impairment loss on investment in affiliate |
|
— |
|
|
|
55,524 |
|
| Bargain gain upon obtaining control |
|
— |
|
|
|
(58,313 |
) |
| Adjusted EBITDA |
$ |
74,734 |
|
|
$ |
45,501 |
|
| Three Month Period Ended |
December 31,
2019 |
|
December 31,
2018 |
| (in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| Net cash provided by operating activities |
$ |
15,319 |
|
|
$ |
16,046 |
|
| Net cash provided by/(used in) investing activities |
$ |
3,295 |
|
|
$ |
(24,007 |
) |
| Net cash (used in)/provided by financing activities |
$ |
(46,410 |
) |
|
$ |
15,754 |
|
| Adjusted EBITDA breakdown |
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
| Three Month Period Ended |
2019
|
|
|
2018 |
| (in thousands of U.S. dollars) |
(unaudited)
|
|
(unaudited) |
| Core shipping operations |
$ |
45,307 |
|
|
$ |
34,763 |
|
| Navios Logistics (including noncontrolling interest) |
|
18,727 |
|
|
|
17,408 |
|
| Navios Containers (including noncontrolling interest) |
|
— |
|
|
|
4,291 |
|
| Equity in net earnings/ (losses) of affiliated companies |
|
10,700 |
|
|
|
(10,961 |
) |
| Adjusted EBITDA |
$ |
74,734 |
|
|
$ |
45,501 |
|
Navios Logistics EBITDA Reconciliation to Net Income
|
December 31, |
|
December 31, |
| Three Month Period Ended |
2019 |
|
2018 |
|
| (in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| Net income/(loss) |
$ |
2,830 |
|
$ |
(2,815 |
) |
| Depreciation and amortization |
|
7,261 |
|
|
7,672 |
|
| Amortization of deferred drydock and special survey costs |
|
1,125 |
|
|
1,429 |
|
| Interest expense and finance cost, net |
|
7,958 |
|
|
9,954 |
|
| Income tax expense |
|
576 |
|
|
150 |
|
| EBITDA |
$ |
19,750 |
|
$ |
16,390 |
|
Navios Containers Reconciliation of EBITDA to Cash from Operations
|
|
|
November 30 to |
| Period |
|
|
December 31, 2018 |
| (in thousands of U.S. dollars) |
|
|
(unaudited) |
| Net cash used in operating activities |
|
|
$ |
(3,791 |
) |
| Net increase in operating assets |
|
|
|
1,292 |
|
| Net decrease in operating liabilities |
|
|
|
4,833 |
|
| Net interest cost |
|
|
|
1,204 |
|
| Deferred finance charges |
|
|
|
(14 |
) |
| Payments for drydock and special survey costs |
|
|
|
1,491 |
|
| EBITDA |
|
|
$ |
5,015 |
|
Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations
|
December 31, |
|
December 31, |
| Year Ended |
2019 |
|
|
2018 |
|
| (in thousands of U.S. dollars) |
|
(unaudited) |
|
|
(unaudited) |
| Net cash provided by operating activities |
$ |
96,112 |
|
|
$ |
55,637 |
|
| Net (decrease)/ increase in operating assets |
|
(97,684 |
) |
|
|
25,632 |
|
| Net decrease/ (increase) in operating liabilities |
|
98,247 |
|
|
|
(6,662 |
) |
| Net interest cost |
|
133,336 |
|
|
|
130,372 |
|
| Deferred finance charges |
|
(8,242 |
) |
|
|
(7,880 |
) |
| Provision for losses on accounts receivable |
|
(999 |
) |
|
|
(575 |
) |
| Equity in affiliates, net of dividends received |
|
(179 |
) |
|
|
(28,793 |
) |
| Payments for drydock and special survey costs |
|
23,106 |
|
|
|
7,755 |
|
| Noncontrolling interest |
|
(7,658 |
) |
|
|
(3,207 |
) |
| Other gain on assets |
|
— |
|
|
|
894 |
|
| Impairment loss/ loss on sale of vessels, net |
|
(156,106 |
) |
|
|
(200,657 |
) |
| Gain on bond and debt extinguishment |
|
47,430 |
|
|
|
6,464 |
|
| Gain on sale of business |
|
9,802 |
|
|
|
— |
|
| (Loss on loss of control)/ Bargain gain upon obtaining control |
|
(61,741 |
) |
|
|
58,313 |
|
| Impairment loss on investment in affiliate |
|
(13,543 |
) |
|
|
(55,524 |
) |
| EBITDA |
$ |
61,881 |
|
|
$ |
(18,231 |
) |
| Impairment loss/ loss on sale of vessels, net |
|
156,106 |
|
|
|
200,657 |
|
| Impairment loss on investment in affiliate |
|
13,543 |
|
|
|
55,524 |
|
| Write-off of intangible assets of affiliates |
|
10,551 |
|
|
|
— |
|
| Loss on loss of control/(Bargain gain upon obtaining control) |
|
61,741 |
|
|
|
(58,313 |
) |
| Adjusted EBITDA |
$ |
303,822 |
|
|
$ |
179,637 |
|
| Year Ended |
December 31,
2019 |
|
December 31,
2018 |
| (in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| Net cash provided by operating activities |
$ |
96,112 |
|
|
$ |
55,637 |
|
| Net cash (used in)/provided by investing activities |
$ |
(56,467 |
) |
|
$ |
27,863 |
|
| Net cash used in financing activities |
$ |
(111,692 |
) |
|
$ |
(66,916 |
) |
| Adjusted EBITDA breakdown |
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
December 31, |
| Year Ended |
2019 |
|
2018 |
| (in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| Core shipping operations |
$ |
162,740 |
|
$ |
121,361 |
|
| Navios Logistics (including noncontrolling interest) |
|
92,299 |
|
|
78,666 |
|
| Navios Containers (including noncontrolling interest) |
|
33,874 |
|
|
4,291 |
|
| Equity in net earnings/ (losses) of affiliated companies |
|
14,909 |
|
|
(24,681 |
) |
| Adjusted EBITDA |
$ |
303,822 |
|
$ |
179,637 |
|
Navios Logistics EBITDA Reconciliation to Net Income
|
December 31,
|
|
December 31, |
| Year Ended |
2019
|
|
2018 |
|
| (in thousands of U.S. dollars) |
(unaudited)
|
|
(unaudited) |
| Net income |
$ |
32,139 |
|
|
$ |
6,862 |
|
| Depreciation and amortization |
|
29,435 |
|
|
|
29,307 |
|
| Amortization of deferred drydock and special survey costs |
|
5,166 |
|
|
|
7,204 |
|
| Interest expense and finance cost, net |
|
35,952 |
|
|
|
39,152 |
|
| Income tax expense/ (benefit) |
|
1,233 |
|
|
|
(1,376 |
) |
| EBITDA |
$ |
103,925 |
|
|
$ |
81,149 |
|
Navios Containers Reconciliation of EBITDA to Cash from Operations
|
January 1 to
August 30,
2019 |
|
November 30 to
December 31,
2018 |
| Period |
|
| (in thousands of U.S. dollars) |
(unaudited) |
|
(unaudited) |
| Net cash provided by/(used in) operating activities |
$ |
9,728 |
|
|
$ |
(3,791 |
) |
| Net increase in operating assets |
|
512 |
|
|
|
1,292 |
|
| Net decrease in operating liabilities |
|
3,531 |
|
|
|
4,833 |
|
| Net interest cost |
|
10,519 |
|
|
|
1,204 |
|
| Deferred finance charges |
|
(492 |
) |
|
|
(14 |
) |
| Payments for drydock and special survey costs |
|
6,108 |
|
|
|
1,491 |
|
| EBITDA |
$ |
29,906 |
|
|
$ |
5,015 |
|
EXHIBIT II
Owned Vessels
| Vessel Name |
|
Vessel Type |
|
Year Built |
|
Deadweight
(in metric tons) |
| Navios Serenity |
|
Handysize |
|
2011 |
|
34,690 |
| Navios Astra |
|
Ultra Handymax |
|
2006 |
|
53,468 |
| Navios Ulysses |
|
Ultra Handymax |
|
2007 |
|
55,728 |
| Navios Celestial |
|
Ultra Handymax |
|
2009 |
|
58,063 |
| Navios Vega |
|
Ultra Handymax |
|
2009 |
|
58,792 |
| Navios Star(1) |
|
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 |
| Dream Canary |
|
Capesize |
|
2015 |
|
180,528 |
| Dream Coral (2) |
|
Capesize |
|
2015 |
|
181,249 |
(1) Agreed to be sold.
(2) Chartered-in vessel expected to be delivered to the owned fleet within Q1 2020.
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) |
| Navios Koyo |
|
Capesize |
|
2011 |
|
181,415 |
|
Yes |
| Navios Obeliks |
|
Capesize |
|
2012 |
|
181,415 |
|
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-in Fleet
Long-term Bareboat-in Fleet in Operation
| Vessel Name |
|
Vessel Type |
|
Year
Built |
|
Deadweight
(in metric
tons) |
|
Purchase
Option(1) |
| Navios Herakles I |
|
Panamax |
|
2019 |
|
82,036 |
|
Yes |
| Navios Uranus |
|
Panamax |
|
2019 |
|
81,516 |
|
Yes |
| Navios Felicity I |
|
Panamax |
|
2020 |
|
81,946 |
|
Yes |
Long-term Bareboat-in Fleet to be delivered
| Vessel Name |
|
Vessel Type |
|
Delivery date |
|
Deadweight
(in metric
tons) |
|
Purchase
Option(1) |
| 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. |
