PIRAEUS, Greece, Aug. 19 /PRNewswire-FirstCall/ -- Navios Maritime Holdings Inc. ("Navios Holdings") (NYSE: NM), a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the second quarter and six months ended June 30, 2009.
"We are pleased with our performance for the first six months. We have solidified our balance sheet, originated approximately $700.0 million of long term debt financing and agreed to issue $213.1 million of mandatorily convertible preferred stock. We have also improved our cash flow by acquiring six new vessels which will generate about $60.0 million of annual EBITDA. We accomplished all of this while protecting shareholders interests", stated Angeliki Frangou, Chairman and CEO of Navios Holdings. Ms. Frangou continued, "We believe that our good reputation, strong balance sheet and significant cash flow afford Navios the opportunity to be patient while we await market developments."
SECOND QUARTER 2009 HIGHLIGHTS -- RECENT DEVELOPMENTS
Acquisition of Six New Capesize Vessels
Navios Holdings agreed to purchase four Capesize vessels in June 2009 and two Capesize vessels in August 2009. All vessels are currently under construction at the same South Korean shipyard. The vessels will be employed under existing long term charter-out agreements with an average length of 9.8 years. The vessels are expected to generate approximately $60.0 million in annual EBITDA (assuming operating expense of $5,000 per day and 360 revenue days per year).
The nominal purchase price for the six new vessels is approximately $466.0 million, of which $213.1 million was funded by mandatorily convertible preferred stock (described below). The use of preferred stock that mandatorily converts into common at a price of not less than $10.00 per share effectively reduces the average vessel acquisition price to $61.1 million from a nominal acquisition price of $77.7 million.
The details of the six new Capesize vessels and their related charters are set forth in the below table:
Name Type DWT Delivery Annual Charter-out Charter Profit
Date EBITDA rate per Term Share
(millions) day (net) (years)
--- -------- ------- ------ ------- ------- ------ ---------
NB1 Capesize 180,000 8/2010 $8.7 $29,356 12 50/50 in
excess of
$37,500
NB2 Capesize 180,000 9/2010 $8.7 $29,356 10 50/50 in
excess of
$38,500
NB3 Capesize 180,000 2/2011 $8.7 $29,356 12 50/50 in
excess of
$37,500
NB4 Capesize 180,000 8/2010 $16.4 $50,588 5 n/a
NB5 Capesize 180,000 10/2010 $8.7 $29,356 10 50/50 in
excess of
$38,500
NB6 Capesize 180,000 12/2010 $8.7 $29,356 10 50/50 in
excess of
$38,500
Delivery of Three Newbuild Capesize Vessels
During June and July 2009, Navios Holdings took scheduled delivery of three newbuild Capesize vessels, constructed by South Korean shipyards. The three vessels will be employed under existing long-term charter-out contracts that are expected to generate a total annual EBITDA of approximately $46.6 million (assuming operating expense of $5,000 per day and 360 revenue days per year). These contracts have been insured by an AA+ EU governmental agency.
Navios Holdings issued a $20.0 million unsecured bond due 2012 ("Debt Security") in partial payment of the acquisition price of a Capesize vessel. The Debt Security is not convertible into any other security of Navios Holdings. Interest will accrue on the principal amount of the Debt Security at the rate of 6% per annum. All accrued interest (which will not be compounded) will be first due and payable in July 2012, on the maturity date. The Debt Security may be prepaid by Navios Holdings at any time without penalty.
Issuance of Mandatorily Convertible Preferred Stock
In June 2009 and August 2009, Navios Holdings agreed to issue $213.1 million in mandatorily convertible preferred stock. $52.8 million will be used to partially finance three existing Capesize vessels, scheduled for delivery in the fourth quarter of 2009, in accordance with the amended agreements.
In general, the holders of the mandatorily convertible preferred stock will receive an annual dividend equal to 2%, payable quarterly, until such time as the preferred stock converts into common stock.
The preferred shares will mandatorily convert into common stock upon the following events: (1) following the third anniversary of issuance, if the common stock closing price is at least $20.00 per share for 10 consecutive business days, then the outstanding shares of preferred stock automatically convert at a conversion price of $14.00 per share of common stock; and (2) 30% of the then-outstanding mandatorily convertible preferred stock will mandatorily convert into common stock five years from the date of issuance and any remaining then-outstanding preferred stock will convert 10 years from the date of issuance at a $10.00 price per share of common stock.
The holder shall have the right to convert the shares of preferred stock into common stock prior to the scheduled maturity date at a price of $14.00 per share of common stock.
The number of shares of common stock that may be issued ranges from 15.2 million, if all shares of preferred stock are converted at $14.00 per share, to 21.3 million, if all shares of preferred stock are converted at $10.00 per common share.
Sale of All Rights to the Panamax Vessel "Navios Sagittarius"
On June 10, 2009, Navios Holdings sold to Navios Maritime Partners L.P. ("Navios Partners") all of the rights to the Navios Sagittarius, a 2006 Japanese-built Panamax vessel with a capacity of 75,756 dwt, including a long term charter-out agreement through November 2018. The sale price amounted to $34.6 million and was received entirely in cash.
12-month Option for the Capesize Navios Bonavis (ex TBN I) - Replacing Purchase Obligation
Navios Holdings released Navios Partners from its obligation to purchase the Capesize vessel Navios Bonavis for $130.0 million and instead has granted a 12-month option to purchase the vessel for $125.0 million. In return, Navios Partners issued to Navios Holdings 1,000,000 subordinated series A units. For purposes of US GAAP, this issuance was recognized as a $6.1 million Non-Cash Income for the second quarter ended June 30, 2009.
In connection with this transaction, Navios Holdings was also released, for a two-year period, from the Omnibus Agreement restriction prohibiting Navios Holdings from acquiring qualifying vessels from third parties. Navios Holdings was not released from the requirement that it offer to sell to Navios Partners qualifying vessels in Navios Holdings' existing fleet. Navios Partners also issued 20,408 additional general partnership units to the General Partner in exchange for $0.2 million.
Following the above transactions, Navios Holdings owns a 46.7% equity interest in Navios Partners which includes 2% general partner interest.
Financial Highlights
- EBITDA increased by 15.6% to $53.4 million in the second quarter of 2009 from $46.2 million in the same period in 2008
- EBITDA increased by 13.8% to $95.8 million in the six months ended June 30, 2009 from $84.2 million fin the same period in 2008
- Maintained net debt to book capitalization at 45.0% at June 30, 2009 compared with 43.5% at December 31, 2008
- Shareholders' Equity increased by 6.5% to $858.0 million at June 30, 2009 compared with $805.8 million at December 31, 2008
Dividend Policy:
The Board of Directors declared a quarterly cash dividend for the second quarter of 2009 of $0.06 per share of common stock. This dividend is payable on October 2, 2009 to stockholders of record as of September 18, 2009. The declaration and payment of any further dividend remains subject to the discretion of the Board and will depend on, among other things, Navios Holdings' cash requirements as measured by market opportunities and restrictions under its credit agreements.
Time Charter Coverage:
Navios Holdings has extended its long-term fleet employment by entering into agreements to charter-out vessels for periods ranging from one to 12 years. As of August 19, 2009, Navios Holdings had contracted 99.0%, 81.4%, 63.2% and 57.7% of its available days on a charter-out basis for 2009, 2010, 2011 and 2012, respectively, equivalent to $251.6 million, $307.1 million, $317.4 million and $305.7 million in revenue, respectively. The average contractual daily charter-out rate for the core fleet is $25,708, $30,471, $34,627 and $35,422 for 2009, 2010, 2011 and 2012, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2009 is $10,003.
The above figures do not include vessels servicing the Contracts of Affreightment ("COA") and Logistics businesses.
Fleet Profile:
Navios Holdings controls a fleet of 59 vessels totaling 6.3 million dwt, of which 32 are owned and 27 are chartered-in under long-term charters. Navios Holdings currently operates 38 vessels (eight Capesize, 13 Panamax, 16 Ultra Handymax and one Handysize product tanker vessel) totaling 3.3 million dwt and has 21 newbuildings to be delivered. These vessels are expected to be delivered at various dates through 2013. The average age of the operating fleet is 4.8 years.
Exhibit 2 displays the "Core Fleet" profile of Navios Holdings.
Financial Results
For the following results and the selected financial data presented herein, Navios Holdings has compiled consolidated statement of income for the three month periods ended June 30, 2009 and 2008. The information was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA is a non-US GAAP financial measure and should not be used in isolation or substitution for Navios Holdings' results.
Second Quarter 2009 Results (in thousands of U.S. dollars, unless otherwise stated, except per share data):
Three Months Three Months
ended ended
June 30, June 30,
2009 2008
--------- ---------
Revenue $142,208 $328,040
EBITDA (*) $53,393 $46,175
Net income (*) $22,137 $79,166
EPS (*) $0.21 $0.72
(*) EBITDA, Net Income and EPS for the three months ended June 30, 2009, were positively affected by $16.8 million gain on sale of assets, $6.1 million non cash compensation from Navios Partners and were negatively affected by $13.8 million unrealized mark-to-market losses on common units of Navios Partners accounted for as available for sale securities. Net Income and EPS for the three month period ended June 30, 2008 were positively affected by the effect of a $57.3 million write-off of deferred Belgian taxes and $0.2 million gain on sale of assets.
Revenue from vessel operations for the three months ended June 30, 2009 was $107.1 million as compared to $302.5 million for the same period during 2008. The decrease in revenue was mainly attributable to a) the decrease in Time Charter Equivalent ("TCE") per day by 43.6% to $26,684 per day in the first quarter of 2009 from $47,313 per day in the same period of 2008 and b) the decrease in the available days for the fleet by 37.8% to 3,721 in the first quarter of 2009 from 5,987 days in the same period of 2008. The decrease in days is mainly attributable to the significantly reduced short term fleet activity by 2,461 days, from 3,035 days in the second quarter of 2008 to 574 days in the second quarter of 2009.
Revenue from the logistics business was $35.1 million for the three months ended June 30, 2009 as compared to $25.5 million during the same period of 2008. This increase was mainly due to the increased fleet of Navios Logistics (which became operating in the fourth quarter of 2008) compared to the same period of 2008.
EBITDA for the second quarter of 2009 and 2008 was $53.4 million and $46.2 million, respectively. The $7.2 million increase in EBITDA was primarily due to a decrease in time charter, voyage and logistic business expenses by $197.6 million from $280.5 million in the second quarter of 2008 to $82.9 million in the same period in 2009 and an increase in gains from sale of assets by $16.6 million. This overall favorable variance of $214.2 was mitigated mainly by a decrease in revenue by $185.8 million from $328.0 million in the second quarter of 2008 to $142.2 million for the same period in 2009, an increase in direct vessel expenses (excluding the amortization of deferred dry dock and special survey costs) by $0.9 million from $6.4 million in the second quarter of 2008 to $7.3 million for the same period in 2009, an increase in general and administrative expenses by $1.7 million from $8.4 million in the second quarter of 2008 to $10.1 million for the same period in 2009 (excluding $0.5 million and $0.7 million share-based compensation for the second quarter of 2009 and 2008, respectively), a decrease in gain from derivatives by $7.1 million from $7.7 million for the second quarter of 2008 to $0.6 million for the same period in 2009, an increase in net other expenses by $10.3 million, a decrease in equity in net earnings from affiliated companies by $0.9 million, from $6.3 million for the second quarter of 2008 to $5.4 million for the same period of 2009 and an increase in income attributable to non-controlling interests by $0.3 million from $1.3 million in the second quarter of 2008 to $1.6 million in the same period of 2009.
EBITDA from the logistics business was $8.6 million for the three months ended June 30, 2009 as compared to $8.2 million during the same period in 2008.
Net income for second quarter ended June 30, 2009 was $22.1 million as compared to $79.2 million for the comparable period of 2008. The decrease of net income by $57.1 million was mainly due to the increase of depreciation and amortization by $2.7 million, the increase in net interest expense by $5.4 million and the decrease in income tax by $56.4 million due to the write-off of deferred income taxes of $57.3 million in the second quarter of 2008. These were mitigated by the increase of $7.2 million in EBITDA discussed above, as well as the $0.2 million decrease in share-based compensation.
First Half of 2009 Results (in thousands of U.S. dollars, unless otherwise stated, except per share data):
Six Months Six Months
ended ended
June 30, June 30,
2009 2008
--------- ---------
Revenue $289,376 $654,546
EBITDA (*) $95,771 $84,173
Net income (*) $34,130 $93,411
EPS (*) $0.33 $0.84
(*) EBITDA, Net Income and EPS for the six months ended June 30, 2009, were positively affected by $16.8 million gain on sale of assets, $6.1 million non cash compensation from Navios Partners and were negatively affected by $13.8 million unrealized mark-to-market losses on common units of Navios Partners, accounted for as available for sale securities. Net Income and EPS for the six month period ended June 30, 2008 were positively affected by the effect of a $57.3 million write-off of deferred Belgian taxes and $2.7 million gain on sale of assets.
Revenue from vessels operations for the six months ended June 30, 2009 was $224.9 million as compared to $607.5 million for the same period during 2008. The decrease in revenue was mainly attributable to a) the decrease in TCE per day by 41.2% to $27,544 per day in the first half of 2009 from $46,824 per day in the same period of 2008 and b) the decrease in the available days for the fleet by 36.7% to 7,601 in the first half of 2009 from 12,000 days in the same period of 2008. The decrease in days is mainly attributable to the significantly reduced short term fleet activity by 4,628 days, from 6,099 days in the first half of 2008 to 1,471 days in the first half of 2009.
Revenue from the logistics business was $64.4 million in the first half of 2009 as compared to $47.0 million during the same period of 2008. This increase was mainly due to the increased fleet of Navios Logistics (which commenced operations in the fourth quarter of 2008) compared to the same period of 2008.
EBITDA for the first half of 2009 and 2008 was $95.8 million and $84.2 million, respectively. The $11.6 million increase in EBITDA was primarily due to a decrease in time charter, voyage and logistic business expenses by $387.8 million from $562.5 million in the first half of 2008 to $174.7 million in the same period in 2009, an increase in equity in net earnings from affiliated companies by $2.2 million, from $8.3 million for the first half of 2008 to $10.5 million for the same period of 2009 and an increase in gains from sale of assets by $14.1 million. This overall favorable variance of $404.1 was mitigated mainly by a decrease in revenue by $365.1 million from $654.5 million in the first half of 2008 to $289.4 million for the same period in 2009, an increase in direct vessel expenses (excluding the amortization of deferred dry dock and special survey costs) by $2.5 million from $11.5 million in the first half of 2008 to $14.0 million for the same period in 2009, an increase in general and administrative expenses by $3.6 million from $16.3 million in the first half of 2008 to $19.9 million for the same period in 2009 (excluding $1.1 million and $1.5 million share-based compensation for the first half of 2009 and 2008, respectively), a decrease in gain from derivatives by $9.7 million from $10.3 million for the first half of 2008 to $0.6 million for the same period in 2009, an increase in net other expenses by $11.4 million, and an increase in income attributable to non-controlling interests by $0.2 million from $1.8 million in the first half of 2008 to $2.0 million in the same period of 2009.
EBITDA from the logistics business was $14.4 million for the six months ended June 30, 2009 as compared to $14.1 million during the same period in 2008.
Net income for six months ended June 30, 2009 was $34.1 million as compared to $93.4 million for the comparable period of 2008. The decrease of net income by $59.3 million was mainly due to the increase in depreciation and amortization by $4.5 million, the increase in net interest expense by $10.3 million, the increase in drydock amortization by $0.2 million and the decrease in income taxes by $56.3 million due to the write-of of deferred income taxes of $57.3 million in the first half of 2008. These were mitigated by the increase of $11.6 million in EBITDA discussed above, as well as the $0.4 million decrease in share-based compensation.
Purchase Options:
Navios Holdings has options to acquire four of the 18 chartered-in vessels currently in operation within the next two years (two Ultra-Handymaxes, one Panamax and one Capesize) and eight of the ten long-term chartered-in vessels on order (on two of the 12 purchase options Navios Holdings holds a 50% initial purchase option).
Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of the Navios Holdings and its fleet performance for the three and six month periods ended June 30, 2009 and 2008.
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
----------- ----------- ---------- ----------
Available
Days (1) 3,721 5,987 7,601 12,000
Operating
Days (2) 3,717 5,970 7,583 11,979
Fleet
Utilization (3) 99.9% 99.7% 99.8% 99.8%
Equivalent
Vessels 40.9 65.8 42.0 65.9
Time Charter
Equivalent (4) $26,684 $47,313 $27,544 $46,824
(1) Available days for fleet are total calendar days the vessels were in Navios Holdings' possession for the relevant period after subtracting off-hire days associated with major repairs, drydocks or special surveys. The shipping industry uses available days to measure the number of days in a relevant period during which vessels should be capable of generating revenues.
(2) Operating days are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues.
(3) Fleet utilization is the percentage of time that Navios Holdings' vessels were available for revenue generating available days, 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) Time Charter Equivalent, 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 already announced, on Thursday, August 20, 2009 at 8:30 am EDT, Navios Holdings' members of senior management will host a conference call to provide highlights and commentary on the second quarter and six months ended June 30, 2009.
A supplemental slide presentation will be available on the Navios Holdings website athttp://www.navios.com under the "Investors" section at 7:30 am EDT on the day of the call. The conference call details are as follows:
Call Date/Time: Thursday, August 20, 2009; 8:30 am EST
Call Title: Navios Maritime Holdings Inc. Q2 2009 Financial Results Conference Call
US Dial In: +1.888.694.4702
International Dial In: +1.973.582.2741
Conference ID: 24691566
The conference call replay will be available shortly after the live call and remain available for one business week at the following numbers:
US Replay Dial In: +1.800.642.1687
International Replay Dial In: +1.706.645.9291
Conference ID: 24691566
This call will be simultaneously Webcast at the following Web address:
http://www.videonewswire.com/event.asp?id=61411. The Webcast will be archived and available at this same Web address for one month following the call.
About Navios Maritime Holdings Inc.
Navios Maritime Holdings Inc. is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain.
Navios Holdings may, from time to time, be required to offer certain owned Capesize and Panamax vessels to Navios Maritime Partners L.P. for purchase at fair market value according to the terms of the Omnibus Agreement.
For more information about Navios Holdings please visit its website: www.navios.com.
About Navios South American Logistics Inc.
Navios Logistics was formed in 2007 through the acquisition of control of the Horamar Group, established in 1975. Navios Logistics specializes in transporting and storing liquid and dry bulk cargoes in the Hidrovia region connecting Argentina, Bolivia, Brazil, Paraguay and Uruguay. Navios Logistics currently controls a fleet of 240 barges and vessels. It also owns and operates an upriver oil storage and transfer facility in Paraguay and the largest bulk transfer and storage port terminal in Uruguay.
About Navios Maritime Partners L.P.
Navios Maritime Partners L.P. (NYSE: NMM), a publicly traded master limited partnership formed by Navios Holdings is an owner and operator of Capesize and Panamax vessels. For more information, please visit its website: www.navios-mlp.com
Forward Looking Statements -- Safe Harbor
This press release contains 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 and Navios Holdings' growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "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 revenues and time charters. 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 changes in the demand for dry bulk vessels, competitive factors in the market in which Navios Holdings operates; 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. 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.
Contacts:
Public & Investor Relations
Navios Maritime Holdings Inc.
Investor Relations
+1.212.279.8820
investors@navios.com
EXHIBIT I
NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of US Dollars, except share data)
June 30, December 31,
2009 2008
--------- ----------
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $211,500 $133,624
Restricted cash 25,531 17,858
Accounts receivable, net of
allowance for doubtful accounts
of $9,384 as at June 30, 2009 and
$8,343 as at December 31, 2008 72,996 109,780
Short term derivative asset 108,683 214,156
Short term backlog asset - 44
Due from affiliate companies 6,509 1,677
Prepaid expenses and other current
assets 27,447 28,270
Total current assets 452,666 505,409
Deposit for vessel acquisitions 477,058 404,096
Vessels, port terminal and other
fixed assets, net 938,934 737,094
Long term derivative assets 22,223 36,697
Other long term assets 55,768 46,855
Investments in affiliates 9,166 5,605
Investments in available for sale
securities 31,158 22,358
Intangible assets other than
goodwill 320,285 347,878
Goodwill 147,632 147,632
Total non-current assets 2,002,224 1,748,215
Total assets $2,454,890 $2,253,624
LIABILITIES AND EQUITY
Current liabilities
Accounts payable $35,754 $72,520
Dividends payable 6,012 9,096
Accrued expenses 34,216 34,468
Deferred income 11,423 11,319
Short term derivative liability 66,205 128,952
Current portion of long term debt 82,190 15,177
Total current liabilities 235,800 271,532
Senior notes, net of discount 298,448 298,344
Long term debt, net of current
portion 751,446 574,194
Unfavorable lease terms 66,458 76,684
Long term liabilities and deferred
income 79,513 47,827
Deferred tax liability 23,326 26,573
Long term derivative liability 10,950 23,691
Total non-current liabilities 1,230,141 1,047,313
Total liabilities 1,465,941 1,318,845
Commitments and contingencies - -
Stockholders' equity
Preferred stock - $0.0001 par
value, authorized 1,000,000
shares, 1,870 and none issued and
outstanding as of June 30, 2009
and December 31, 2008,
respectively. - -
Common stock - $0.0001 par value,
authorized 250,000,000 shares,
issued and outstanding
100,205,184 and 100,488,784 as of
June 30, 2009 and December 31,
2008, respectively 10 10
Additional paid-in capital 502,248 494,719
Accumulated other comprehensive
loss - (22,578)
Retained earnings 355,754 333,669
Total stockholders' equity 858,012 805,820
Noncontrolling interest 130,937 128,959
Total equity 988,949 934,779
Total liabilities and equity $2,454,890 $2,253,624
NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of US Dollars -- except per share data)
Three Month Three Month Six Month Six Month
Period Period Period Period
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue $142,208 $328,040 $289,376 $654,546
Time charter,
voyage and
logistic
business
expenses (82,883) (280,548) (174,682) (562,476)
Direct vessel
expenses (7,915) (6,885) (15,085) (12,518)
General and
administrative
expenses (10,561) (9,065) (20,992) (17,778)
Depreciation
and
amortization (16,377) (13,837) (31,917) (27,442)
Interest
income/(expense)
and finance
cost, net (14,737) (9,307) (29,102) (18,799)
Gain on
derivatives 645 7,743 619 10,255
Gain on sale
of
assets/partial
sale of
subsidiary 16,790 174 16,790 2,748
Other
income/(expense),
net (9,784) 536 (10,992) 462
Income before
equity in net
earnings of
affiliate
companies 17,386 16,851 24,015 28,998
Equity in net
earnings of
affiliated
companies 5,399 6,257 10,499 8,336
Income before
taxes $22,785 $23,108 $34,514 $37,334
Income taxes 962 57,360 1,594 57,868
Net income 23,747 80,468 36,108 95,202
Less: Net
income
attributable
to the
noncontrolling
interest (1,610) (1,302) (1,978) (1,791)
Net income
attributable
to Navios
Holdings
common
stockholders $22,137 $79,166 $34,130 $93,411
Basic net
income per
share
attributable
to Navios
Holdings
common
stockholders $0.22 $0.75 $0.34 $0.88
Weighted
average
number of
shares, basic 99,839,013 105,990,135 99,947,002 106,181,035
Diluted net
income per
share
attributable
to Navios
Holdings
common
stockholders $0.21 $0.72 $0.33 $0.84
Weighted
average
number of
shares,
diluted 105,281,778 110,452,110 103,562,826 110,574,248
NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of US Dollars)
Six Month Six Month
Period Period
ended ended
June 30, June 30,
2009 2008
-------- --------
(unaudited) (unaudited)
OPERATING ACTIVITIES:
Net income attributable to Navios
Holdings common stockholders $34,130 $93,411
Adjustments to reconcile net income
to net cash provided by operating
activities:
Non-cash adjustments 34,934 (28,064)
Decrease in operating assets 26,644 36,760
Increase/(Decrease) in operating
liabilities 19,839 (36,270)
Payments for dry dock and special
survey costs (1,831) (2,288)
Net cash provided by operating
activities 113,716 63,549
INVESTING ACTIVITIES:
Acquisition of subsidiary, net of
cash acquired - (105,069)
Deposits in escrow in connection
with acquisition of subsidiary - (5,000)
Restricted cash for assets
acquisition - (34,506)
Acquisition of vessels (121,109) (39,161)
Deposits for vessel acquisitions (105,657) (81,444)
Receipts from finance lease 268 4,569
Proceeds from sale of assets 34,600 35,088
Purchase of property and equipment (28,002) (36,885)
Net cash used in investing
activities (219,900) (262,408)
FINANCING ACTIVITIES:
Proceeds from long term loan, net of
deferred finance fees 214,104 104,089
Repayment of long term debt and
payment of principal (6,948) (24,710)
Dividends paid (15,129) (19,191)
Acquisition of treasury stock (717) (9,130)
Increase in restricted cash (7,250) -
Issuance of common stock - 4,494
Net cash provided by financing
activities 184,060 55,552
Increase/(decrease) in cash and cash
equivalents 77,876 (143,307)
Cash and cash equivalents, beginning
of period 133,624 427,567
Cash and cash equivalents, end of
period $211,500 $284,260
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for interest $25,472 $21,328
Cash paid for income taxes $1,191 $1,217
Non-cash investing and financing
activities
Issuance of shares, preferred stock
and convertible debt in connection
with the acquisition of vessels $39,070 $ -
Disclosure of Non-GAAP Financial Measures
EBITDA: EBITDA represents net income before interest, taxes, depreciation and amortization. Navios Holdings uses EBITDA because Navios Holdings believes that EBITDA is a basis upon which liquidity can be assessed and because Navios Holdings believes that EBITDA presents useful information to investors regarding Navios Holdings' ability to service and/or incur indebtedness.
EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of Navios Holdings' results as reported under US GAAP. Some of these limitations are: (i) EBITDA does not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA should not be considered as a principal indicator of Navios Holdings' performance.
EBITDA Reconciliation to Cash from Operations
Three Months Ended June 30, June 30,
(in thousands of US Dollars) 2009 2008
-------- --------
Net cash provided by operating activities $63,729 $53,930
Net increase (decrease) in operating assets (3,008) 3,272
Net increase in operating liabilities (24,925) (19,826)
Net interest cost 14,737 9,306
Deferred finance charges (1,419) (461)
Provision for losses on accounts receivable (1,041) -
Unrealized loss on FFA derivatives, warrants and
interest rate swaps (207) (2,863)
Earnings in affiliates and joint ventures, net of
dividends received (2,201) 3,460
Payments for drydock and special survey 244 485
Non-Controlling interest (1,610) (1,302)
Unrealized losses on available for sale securities (13,778) -
Non cash compensation received 6,082 -
Gain on sale of assets/partial sale of subsidiary 16,790 174
EBITDA $53,393 $46,175
======= =======
Six Months Ended June 30, June 30,
(in thousands of US Dollars) 2009 2008
--------------------------- --------- --------
Net cash provided by operating activities $113,716 $63,549
Net decrease in operating assets (26,644) (37,160)
Net (increase) decrease in operating liabilities (19,839) 36,668
Net interest cost 29,102 18,799
Deferred finance charges (2,128) (925)
Provision for losses on accounts receivable (1,041) -
Unrealized loss on FFA derivatives, warrants and
interest rate swaps (3,820) (3,167)
Earnings in affiliates and joint ventures, net of
dividends received (2,522) 3,164
Payments for drydock and special survey 1,831 2,288
Non-Controlling interest (1,978) (1,791)
Unrealized losses on available for sale securities (13,778) -
Non cash compensation received 6,082 -
Gain on sale of assets/partial sale of subsidiary 16,790 2,748
------ -----
EBITDA $95,771 $84,173
======= =======
EXHIBIT 2
Owned Vessels
Year
Vessel Name Vessel Type Built Deadweight
--------------- -------------- ------- ----------
(in metric tons)
Navios Ionian Ultra Handymax 2000 52,068
Navios Apollon Ultra Handymax 2000 52,073
Navios Horizon Ultra Handymax 2001 50,346
Navios Herakles Ultra Handymax 2001 52,061
Navios Achilles Ultra Handymax 2001 52,063
Navios Meridian Ultra Handymax 2002 50,316
Navios Mercator Ultra Handymax 2002 53,553
Navios Arc Ultra Handymax 2003 53,514
Navios Hios Ultra Handymax 2003 55,180
Navios Kypros Ultra Handymax 2003 55,222
Navios Ulysses Ultra Handymax 2007 55,728
Navios Vega Ultra Handymax 2009 58,792
Navios Magellan Panamax 2000 74,333
Navios Star Panamax 2002 76,662
Navios Hyperion Panamax 2004 75,707
Navios Orbiter Panamax 2004 76,602
Navios Asteriks Panamax 2005 76,801
Navios Pollux Capesize 2009 180,727
Navios Happiness Capesize 2009 180,022
Navios Bonavis Capesize 2009 180,022
Vanessa Product Handysize 2002 19,078
Owned Vessels to be delivered
Vessel Delivery
Vessel Name Type Date Deadweight
---------------- -------- ------- ----------
(in metric tons)
Navios Aurora II Capesize 10/2009 172,000
Navios Lumen Capesize 11/2009 181,000
Navios Antares Capesize 11/2009 172,000
Navios Stellar Capesize 12/2009 172,000
Navios Phoenix Capesize 1/2010 180,000
Navios Fulvia Capesize 8/2010 180,000
NB2 Capesize 8/2010 180,000
NB3 Capesize 9/2010 180,000
NB4 Capesize 2/2011 180,000
NB5 Capesize 10/2010 180,000
NB6 Capesize 12/2010 180,000
Long term Chartered-in Fleet in Operation
Year Purchase
Vessel Name Vessel Type Built Deadweight Option(1)
-------------- -------------- ----- ---------- -----------
(in metric tons)
Navios Vector Ultra Handymax 2002 50,296 No
Navios Astra Ultra Handymax 2006 53,468 Yes
Navios Primavera Ultra Handymax 2007 53,464 Yes
Navios Armonia Ultra Handymax 2008 55,100 No
Navios Cielo Panamax 2003 75,834 No
Navios Orion Panamax 2005 76,602 No
Navios Titan Panamax 2005 82,936 No
Navios Altair Panamax 2006 83,001 No
Navios Esperanza Panamax 2007 75,200 No
Torm Antwerp Panamax 2008 75,250 No
Belisland Panamax 2003 76,602 No
Golden Heiwa Panamax 2007 76,662 No
SA Fortius Capesize 2001 171,595 No
C. Utopia Capesize 2007 174,000 No
Beaufiks Capesize 2004 180,181 Yes
Rubena N Capesize 2006 203,233 No
SC Lotta Capesize 2009 170,500 No
Long term Chartered-in Fleet to be Delivered
Vessel Delivery Purchase
Vessel Name Type Date Deadweight Option(1)
--------------- --------- ------- --------- --------
(in metric tons)
Phoenix Beauty Capesize 01/2010 170,500 No
Kleimar TBN Capesize 04/2010 176,800 No
Navios TBN Handysize 02/2011 35,000 Yes (2)
Navios TBN Handysize 04/2011 35,000 Yes (2)
Navios TBN Panamax 09/2011 80,000 Yes
Navios TBN Capesize 09/2011 180,200 Yes
Navios TBN Ultra 03/2012 61,000 Yes
Handymax
Kleimar TBN Capesize 07/2012 180,000 Yes
Navios TBN Panamax 01/2013 82,100 Yes
Navios TBN Ultra 08/2013 61,000 Yes
Handymax
(1) Generally, Navios Holdings may exercise its purchase option after three to five years of service.
(2) The initial 50% purchase option on each vessel is held by Navios Holdings.
