Navios Maritime Holdings Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2021
- $664.3 million Note Retirement
- Extinguishment of $614.3 million Ship Mortgage Notes due January 15, 2022
- Redemption of $50.0 million of Senior Secured Notes due August 15, 2022
- $550 million Debt Financing
- $287.0 million of Commercial Bank facilities and Sale-Leaseback Agreements
- $262.6 million PIK Loan facilities with NSM
- Net Income
- $59.8 million in Q3 2021
- $84.9 million in 9M 2021
- Revenue
- 33.5% increase to $168.4 million in Q3 2021
- 36.5% increase to $429.0 million in 9M 2021
- Cash from operating activities
- $33.0 million in Q3 2021
- $31.7 million in 9M 2021
- Adjusted EBITDA
- 94.0% increase to $116.1 million in Q3 2021
- 117.0% increase to $251.3 million in 9M 2021
- Time Charter Equivalent
- $30,146 per day in Q3 2021 compared to $14,056 per day in Q3 2020
- $21,470 per day in 9M 2021 compared to $9,673 per day in 9M 2020
- Navios Partners’ Merger
- NM owns 10.3% post merger with Navios Acquisition
- NM owns 10.3% post merger with Navios Acquisition
GRAND CAYMAN, Cayman Islands, Dec. 16, 2021 (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 third quarter and nine months ended September 30, 2021.
Angeliki Frangou, Chairwoman and Chief Executive Officer, stated, “I am pleased with the results for the third quarter of 2021. In the third quarter, Navios Holdings reported revenue of $168.4 million, EBITDA of $116.1 million and Net Income of $59.8 million. For the first nine months 2021, we reported revenue of $429.0 million, Adjusted EBITDA of $251.3 million and Adjusted Net income of $84.9 million.”
Angeliki Frangou, continued, “Navios announced plans for addressing about $770 million in upcoming note maturities. The announced refinancing addresses the imminent maturity of $614.3 million of Ship Mortgage Notes and provides liquidity and sufficient runway for Navios Holdings to satisfy $155.0 million of Senior Secured Notes maturing in August of 2022. Importantly, for about half of the new debt financing package, we achieved an 18-month period during which there would be no cash requirement for interest or amortization, and overall we extended and staggered the maturity date of our new debt facilities.”
HIGHLIGHTS – RECENT DEVELOPMENTS
$664.3 million Note Retirement
Navios Holdings expects to extinguish $614.3 million of its 7.375% First Priority Ship Mortgage Notes due January 15, 2022 (the “Ship Mortgage Notes”) and to redeem $50.0 million of its 11.25% Senior Secured Notes due August 15, 2022 (the “Senior Secured Notes”) through a combination of sources, including $550 million of debt financing described below and available cash. Navios Holdings has entered into the following agreements: (i) a term loan facility with Credit Agricole CIB (“CACIB”) and BNP Paribas (“BNPP”) of up to $105.0 million; (ii) a term loan facility with Hamburg Commercial Bank AG (“HCOB”) of up to $105.0 million; (iii) sale-leaseback agreements of $77.0 million in total and (iv) $262.6 million of PIK loan facilities from N Shipmanagement Acquisition Corp. and its subsidiaries (“NSM”), an entity affiliated with Navios Holdings’ Chairwoman and Chief Executive Officer, including additional liquidity of $150.0 million and providing for release of approximately $300.0 million of collateral. The PIK loan facilities from NSM provide for a 18-month period during which there will be no cash interest or amortization. These transactions are expected to close by the first half of January 2022.
Pro forma for the above transactions, Navios Holdings has decreased its leverage by 39.3% to $722 million from $1,189 million debt outstanding (including Ship Mortgage Notes repurchased which are being cancelled) as of December 31, 2020. In addition, Navios Holdings extended its maturities for the next four years in a staggered manner. The next maturity after the $105.0 million remaining Senior Secured Notes due in August 2022, will be in 2024.
Navios Partners’ Merger
On October 15, 2021, Navios Partners completed the merger (“NNA Merger”) with Navios Maritime Acquisition Corporation (“Navios Acquisition”). As a result thereof, Navios Acquisition became a wholly-owned subsidiary of Navios Partners. Each outstanding common unit of Navios Acquisition that was held by a unitholder other than Navios Partners, Navios Acquisition and their respective subsidiaries was converted into the right to receive 0.1275 of a common unit of Navios Partners. As a result, 3,388,226 common units of Navios Partners were issued to former public unitholders of Navios Acquisition.
After the completion of the NNA Merger, Navios Holdings has a 10.3% ownership interest in Navios Partners.
Fleet Statistics
Navios Holdings controls a fleet of 36 vessels totaling 3.9 million dwt, of which 25 are owned (including five bareboat-in vessels) and 11 are chartered-in under long-term charters (collectively, the "Core Fleet"). The fleet consists of 12 Capesize, 19 Panamax, four Ultra-Handymax and one Handysize vessels, with an average age of 8.9 years.
Navios Holdings has currently chartered-out 100.0% of available days for the remaining three months of 2021. 88.4% of available days are chartered-out on fixed rate and 11.6% are chartered-out on index.
The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining three months of 2021 is $16,833 per day.
The above figures do not include the fleet of Navios Logistics.
Exhibit II provides certain details of the Core Fleet of Navios Holdings. It does not include the fleet of Navios Logistics.
Non-GAAP Measures
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 EBITDA of Navios Logistics (on a stand-alone basis) and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.
Earnings Highlights
Third Quarter 2021 and 2020 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The third quarter 2021 and 2020 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
| Three Month Period Ended September 30, 2021 | Three Month Period Ended September 30, 2020 | ||||||
| (unaudited) | (unaudited) | ||||||
| Revenue | $ | 168,449 | $ | 126,155 | |||
| Net Income/(Loss) attributable to Navios Holdings’ common stockholders | $ | 59,808 | $ | (10,060) | |||
| Adjusted Net Income attributable to Navios Holdings’ common stockholders | $ | 59,808 | $ | 1,780 | (1) | ||
| Net cash provided by operating activities | $ | 33,033 | $ | 29,775 | |||
| EBITDA | $ | 116,143 | $ | 48,032 | |||
| Adjusted EBITDA | $ | 116,143 | $ | 59,872 | (1) | ||
| Basic Earnings/ (Loss) attributable to Navios Holdings’ common stockholders per share | $ | 3.67 | $ | (0.88) | |||
| Adjusted Basic Earnings attributable to Navios Holdings’ common stockholders per share | $ | 3.67 | $ | 0.04 | (1) | ||
| (1) | Adjusted Net Income, Adjusted EBITDA and Adjusted Basic Earnings per share attributable to Navios Holdings’ common stockholders for the three month period ended September 30, 2020 exclude (i) $7.7 million in impairment losses relating to two drybulk vessels sold during the period; and (ii) $4.2 million in write-off of deferred financing cost for bond and debt extinguishment incurred by Navios Logistics. |
Revenue from the Dry Bulk Vessel Operations for the three month period ended September 30, 2021 increased by $37.5 million, or 55.7%, to $104.9 million, as compared to $67.4 million for the same period during 2020. The increase in dry bulk revenue was mainly attributable to the increase in the time charter and freight market during three month period ended September 30, 2021. The TCE per day increased by 114.5% to $30,146 per day in the three month period ended September 30, 2021, as compared to $14,056 per day in the same period of 2020.
Revenue from the Logistics Business was $63.5 million for the three month period ended September 30, 2021, as compared to $58.8 million for the same period in 2020. The increase was mainly attributable to (a) a $3.3 million increase in revenue from the barge business mainly due to a $2.9 million increase in CoA/voyage revenues related to higher liquid cargo moved and by a $0.3 million increase in time charter revenues mainly due to an increase in time charter days; (iii) a $2.5 million increase in revenue from the port terminal business mainly due to revenues from minimum guarantee contracts in the grain port terminal; and (iii) a $0.8 million increase in sales of products due to the increase in the Paraguayan liquid port’s price of products sold. The overall increase was partially mitigated by a $1.8 million decrease in revenue from the cabotage business mainly due to fewer operating days.
Net Income attributable to Navios Holdings’ common stockholders was $59.8 million for the three month period ended September 30, 2021, as compared to $10.1 million Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2020. Net Loss attributable to Navios Holdings’ common stockholders in the three month period ended September 30, 2020 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 September 30, 2021 was $59.8 million as compared to $1.8 million Adjusted Net Income attributable to Navios Holdings’ common stockholders for the three month period ended September 30, 2020. This increase in Adjusted Net Income was mainly due to (i) a $56.3 million increase in Adjusted EBITDA as discussed in the paragraph below; (ii) a $3.2 million decrease in depreciation and amortization; (iii) $1.8 million decrease in interest expense and finance cost, net, mainly due to the partial redemption of the Senior Secured Notes; and (iv) a $0.2 million decrease in stock-based compensation expense. This overall increase of approximately $61.4 million was partially mitigated by (i) a $3.2 million increase in income tax expense mainly due to the recalculation of the deferred tax liability resulting from an increase in income tax rate; and (ii) a $0.2 million increase in amortization of deferred drydock, special survey and other capitalized items.
Net Loss of Navios Logistics, on a standalone basis, was $4.4 million for the three month period ended September 30, 2021 as compared to $2.7 million of Net Income for the same period in 2020. Excluding $4.2 million in write-off of deferred financing cost for bond and debt extinguishment incurred for the three month periods ended September 30, 2020, Adjusted Net income of Navios Logistics, on a standalone basis, was $6.8 million for the three month period ended September 30, 2020.
Adjusted EBITDA of Navios Holdings for the three month period ended September 30, 2021 increased by $56.3 million to $116.1 million, as compared to $59.9 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to (i) a $42.3 million increase in revenue; (ii) a $11.3 million increase in net loss attributable to noncontrolling interest; (iii) a $9.9 million increase in equity in net earnings from affiliate companies; and (iv) a $0.6 million decrease in general and administrative expenses (excluding stock-based compensation expenses). This overall increase of $64.2 million was partially mitigated by a (i) $4.6 million increase in other expense, net; (ii) a $2.2 million increase in time charter, voyage and logistics business expenses; (iii) a $0.8 million increase in loss on bond extinguishment; and (iv) $0.3 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items).
EBITDA of Navios Logistics, on a standalone basis, was $23.1 million for the three month period ended September 30, 2021, as compared to $24.2 million for the same period in 2020. Excluding $4.2 million in write-off of deferred finance cost for bond extinguishment incurred for the three month period ended September 30, 2020, Adjusted EBITDA of Navios Logistics, on a standalone basis, was $28.3 million for the three month period ended September 30, 2020.
Nine Months Ended September 2021 and 2020 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The information for the nine months period ended September 30, 2021 and 2020 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
| Nine Month Period Ended September 30, 2021 | Nine Month Period Ended September 30, 2020 | ||||||
| (unaudited) | (unaudited) | ||||||
| Revenue | $ | 429,024 | $ | 314,365 | |||
| Net Income/(Loss) attributable to Navios Holdings’ common stockholders | $ | 84,906 | $ | (98,606) | |||
| Adjusted Net Income/ (Loss) attributable to Navios Holdings’ common stockholders | $ | 84,915 | (1) | $ | (47,007) | (2) | |
| Net cash provided by operating activities | $ | 31,668 | $ | 35,305 | |||
| EBITDA | $ | 251,271 | $ | 64,205 | |||
| Adjusted EBITDA | $ | 251,280 | (1) | $ | 115,804 | (2) | |
| Basic Earnings/ (Loss) attributable to Navios Holdings’ common stockholders per share | $ | 5.76 | $ | (7.94) | |||
| Adjusted Basic Earnings/ (Loss) attributable to Navios Holdings’ common stockholders per share | $ | 5.76 | (1) | $ | (3.95) | (3) | |
| (1) | Adjusted Net Income, Adjusted EBITDA and Adjusted Basic Earnings per share attributable to Navios Holdings’ common stockholders for the nine month period ended September 30, 2021 exclude (i) $25.9 million in equity income in affiliate companies due to the merger of Navios Containers with Navios Partners (“Navios Partners Merger I”) effected on March 31, 2021; and (ii) approximately $25.9 million in impairment losses relating to seven drybulk vessels. |
| (2) | Adjusted Net Loss and Adjusted EBITDA attributable to Navios Holdings’ common stockholders for the nine month period ended September 30, 2020 exclude (i) $27.9 million in impairment losses relating to six drybulk vessels sold during the period; (ii) $12.7 million in other-than-temporary impairment (“OTTI”) loss and impairment losses of loan receivable in relation to Navios Europe II; (iii) $5.6 million in non-cash impairment losses incurred by our affiliate companies relating to their investment in Navios Europe II; (iv) $4.2 million in write-off of deferred finance cost for bond extinguishment incurred by Navios Logistics; and (v) $1.3 million in non-cash vessel impairment losses incurred by our affiliate companies. |
| (3) | Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share for the nine month period ended September 30, 2020 excludes the items referred in footnote (2) above as well as a gain of $0.2 million related to the conversion of accrued dividends on private preferred stock to common stock. |
Revenue from the Dry Bulk Vessel Operations for the nine month period ended September 30, 2021 increased by $114.7 million, or 82.0%, to $254.7 million, as compared to $140.0 million for the same period during 2020. The increase in dry bulk revenue was mainly attributable to the increase in the time charter and freight market during nine month period ended September 30, 2021. The TCE per day increased by 122.0% to $21,470 per day in the nine month period ended September 30, 2021, as compared to $9,673 per day in the same period of 2020.
Revenue from the Logistics Business was $174.3 million for the nine month period ended September 30, 2021, as compared to $174.4 million for the same period in 2020. The decrease was mainly attributable to (i) a $8.3 million decrease in revenue from the cabotage business mainly due to fewer operating days; (ii) a $6.9 million decrease in sales of products due to the decrease in the Paraguayan liquid port’s volume of products sold. The overall decrease was partially mitigated by (i) a $9.9 million increase in revenue from the barge business mainly due to a $16.8 million increase in CoA/voyage revenues related to higher CoA/voyage revenues of convoys previously under time charter contracts, partially mitigated by a $6.8 million decrease in time charter revenues mainly due to the expiration of certain legacy time charter contracts; and (ii) a $5.3 million increase in revenue from the port terminal business mainly due to higher volumes transshipped in the grain port terminal.
Net Income attributable to Navios Holdings’ common stockholders was $84.9 million for the nine month period ended September 30, 2021, as compared to $98.6 million Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2020. Net Income/(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 nine month period ended September 30, 2021 was approximately $84.9 million, as compared to $47.0 million Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2020. This increase in Adjusted Net Income was mainly due to (i) a $135.5 million increase in Adjusted EBITDA as discussed in the paragraph below; (ii) a $7.0 million decrease in depreciation and amortization; and (iii) a $0.5 million decrease in stock-based compensation expense. This overall increase of $143.0 million was partially mitigated by (i) a $7.5 million increase in interest expense and finance cost, net, mainly due to the higher weighted average interest rate of Navios Logistics due to the issuance of the 10.75% Notes due 2025; (ii) a $3.1 million increase in income tax expense mainly due to the recalculation of the deferred tax liability resulting from an increase in income tax rate; and (iii) a $0.5 million increase in amortization of deferred drydock, special survey and other capitalized items.
Net Loss of Navios Logistics, on a standalone basis, was $2.3 million for the nine month period ended September 30, 2021 as compared to $21.7 million for the same period in 2020. Excluding $4.2 million in write-off of deferred finance cost for bond extinguishment incurred for the nine month period ended September 30, 2020, Adjusted Net Income of Navios Logistics, on a standalone basis, was $25.9 million for the nine month period ended September 30, 2020.
Adjusted EBITDA of Navios Holdings for the nine month period ended September 30, 2021 increased by $135.5 million to $251.3 million, as compared to $115.8 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to (i) a $114.7 million increase in revenue; (ii) a $17.4 million increase in net loss attributable to noncontrolling interest; (iii) a $12.0 million decrease in time charter, voyage and logistics business expenses; (iv) a $7.9 million increase in equity in net earnings from affiliate companies; and (iv) a $0.7 million decrease in general and administrative expenses (excluding stock-based compensation expenses). This overall increase of $152.7 million was partially mitigated by (i) a $10.2 million decrease in gain on bond extinguishment; (ii) a $4.4 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (iii) a $2.7 million decrease in other expense, net;
EBITDA of Navios Logistics, on a standalone basis, was $67.8 million for the nine month period ended September 30, 2021, as compared to $73.4 million for the same period in 2020. Excluding $4.2 million in write-off of deferred financing cost for bond and debt extinguishment incurred for the nine month period ended September 30, 2020, Adjusted EBITDA of Navios Logistics, on a standalone basis, was $77.5 million for the nine month period ended September 30, 2020.
Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of Navios Holdings' dry bulk operations (excluding the Navios Logistics’ fleet) and its fleet performance for the three and nine month periods ended September 30, 2021 and 2020, respectively.
| Three Month | Three Month | Nine Month | Nine Month | ||||||||||||
| Period Ended | Period Ended | Period Ended | Period Ended | ||||||||||||
| September 30, | September 30, | September 30, | September 30, | ||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||
| Available Days (1) | 3,377 | 4,651 | 11,495 | 13,822 | |||||||||||
| Operating Days (2) | 3,316 | 4,567 | 11,412 | 13,666 | |||||||||||
| Fleet Utilization (3) | 98.2% | 98.2% | 99.3% | 98.9% | |||||||||||
| Equivalent Vessels (4) | 37 | 51 | 42 | 50 | |||||||||||
| TCE (5) | $ | 30,146 | $ | 14,056 | $ | 21,470 | $ | 9,673 | |||||||
| (1) | Available days are the total number of days a vessel is controlled by a company less the aggregate number of days that the vessel is off-hire due to major repairs or repairs under guarantee, vessel upgrades, drydocking or special surveys and ballast days relating to voyages. The shipping industry uses available days to measure the number of days in a period during which vessels should be capable of generating revenues. |
| (2) | Operating days are the number of available days in a period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. |
| (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. |
| (4) | Equivalent Vessels are defined as the available days of the fleet divided by the number of the calendar days in the period. |
| (5) | TCE rates are defined as voyage and time charter revenues less voyage expenses during a period divided by the number of available days during the period. The TCE rate is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels on various types of contracts for the number of available days of the fleet. |
Conference Call:
As previously announced, Navios Holdings will host a conference call today, December 16, 2021, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on earnings results for the third quarter and nine month period ended September 30, 2021.
A supplemental slide presentation will be available on the Navios Holdings website at www.navios.com under the "Investors" section by 8:00 am ET on the day of the call.
Conference Call details:
Call Date/Time: Thursday, December 16, 2021 at 8:30 am ET
Call Title: Navios Holdings Q3 2021 Financial Results Conference Call
US Dial In: +1.877.876.9173
International Dial In: +1.785.424.1667
Conference ID: NMQ321 or 667321
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: +1.800.839.2434
International Replay Dial In: +1.402.220.7211
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 Partners L.P.
Navios Maritime Partners L.P. (NYSE: NMM) is a publicly traded master limited partnership which owns and operates dry cargo and tanker vessels. For more information, please visit its website at www.navios-mlp.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 with respect to repayment of the ship mortgage notes and redemption of the senior secured notes, expected cash flow generation, expected effects of the Navios Partners/Navios Acquisition transaction, future contracted revenues, potential capital gains, our ability to take advantage of dislocation in the market and any market recovery, Navios Holdings' growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further time charters, and Navios Holdings’ ability to meet its ESG goals. 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 risks relating to: global and regional economic and political conditions including the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity; demand for seaborne transportation of the products we ship; the ability and willingness of charterers to fulfill their obligations to us; prevailing charter rates; shipyards performing scrubber installations, drydocking and repairs; changing vessel crews and availability of financing; potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists, including the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it; 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; 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 September 30, 2021 | Three Month Period Ended September 30, 2020 | Nine Month Period Ended September 30, 2021 | Nine Month Period Ended September 30, 2020 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||
| Revenue | $ | 168,449 | $ | 126,155 | $ | 429,024 | $ | 314,365 | |||||||
| Time charter, voyage and logistics business expenses | (41,551) | (39,376) | (116,719) | (128,730) | |||||||||||
| Direct vessel expenses(1) | (28,571) | (28,093) | (83,718) | (78,831) | |||||||||||
| General and administrative expenses(2) | (6,859) | (7,646) | (22,222) | (23,444) | |||||||||||
| Depreciation and amortization | (14,539) | (17,753) | (46,793) | (53,841) | |||||||||||
| Interest expense and finance cost, net | (35,089) | (36,859) | (107,459) | (99,920) | |||||||||||
| Impairment loss/ loss on sale of vessels, net | — | (7,683) | (25,861) | (27,898) | |||||||||||
| (Loss)/gain on bond and debt extinguishment | (822) | (4,157) | 1,051 | 7,047 | |||||||||||
| Other (expense)/income, net | (2,181) | 2,382 | (3,428) | (772) | |||||||||||
| Impairment of loan receivable from affiliate company | — | — | — | (6,050) | |||||||||||
| Income/ (Loss) before equity in net earnings of affiliate companies | $ | 38,837 | $ | (13,030) | $ | 23,875 | $ | (98,074) | |||||||
| Equity in net earnings of affiliate companies | 14,329 | 4,390 | 54,923 | 7,698 | |||||||||||
| Income/ (Loss) before taxes | $ | 53,166 | $ | (8,640) | $ | 78,798 | $ | (90,376) | |||||||
| Income tax expense | (3,696) | (453) | (3,470) | (380) | |||||||||||
| Net income/ (loss) | $ | 49,470 | $ | (9,093) | $ | 75,328 | $ | (90,756) | |||||||
| Less: Net loss/ (income) attributable to the noncontrolling interest | 10,338 | (967) | 9,578 | (7,850) | |||||||||||
| Net income/ (loss) attributable to Navios Holdings common stockholders | $ | 59,808 | $ | (10,060) | $ | 84,906 | $ | (98,606) | |||||||
| Income/ (Loss) attributable to Navios Holdings common stockholders, basic and diluted | $ | 58,524 | $ | (11,344) | $ | 81,061 | $ | (102,302) | |||||||
| Basic earnings/ (loss) per share attributable to Navios Holdings common stockholders | $ | 3.67 | $ | (0.88) | $ | 5.76 | $ | (7.94) | |||||||
| Weighted average number of shares, basic | 15,924,134 | 12,901,880 | 14,065,205 | 12,888,831 | |||||||||||
| Basic diluted earnings/ (loss) per share attributable to Navios Holdings common stockholders | $ | 3.59 | $ | (0.88) | $ | 5.61 | $ | (7.94) | |||||||
| Weighted average number of shares, diluted | 16,308,552 | 12,901,880 | 14,452,016 | 12,888,831 | |||||||||||
| (1) | Includes expenses of Navios Logistics of $16.5 million and $14.2 million for the three month period ended September 30, 2021 and 2020, respectively, and $47.6 million and $39.4 million for the nine month period ended September 30, 2021 and 2020, respectively. |
| (2) | Includes expenses of Navios Logistics of $3.6 million and $3.3 million for the three month period ended September 30, 2021 and 2020, respectively, and $10.4 million and $9.7 million for the nins month period ended September 30, 2021 and 2020, respectively. |
NAVIOS MARITIME HOLDINGS INC.
Other Financial Data
| September 30, 2021 | December 31, 2020 | ||||||
| ASSETS | (unaudited) | (unaudited) | |||||
| Cash and cash equivalents, including restricted cash | $ | 46,740 | $ | 111,184 | |||
| Vessels, port terminals and other fixed assets, net | 983,904 | 1,139,539 | |||||
| Goodwill and other intangibles | 254,718 | 258,899 | |||||
| Operating lease assets | 180,869 | 227,962 | |||||
| Other current and non-current assets | 287,846 | 233,741 | |||||
| Total assets | $ | 1,754,077 | $ | 1,971,325 | |||
| LIABILITIES AND EQUITY | |||||||
| Long-term debt, including current portion | $ | 261,088 | $ | 320,863 | |||
| Senior and ship mortgage notes, net | 1,110,039 | 1,263,566 | |||||
| Operating lease liabilities, current portion | 55,096 | 81,415 | |||||
| Operating lease liabilities, net of current portion | 155,545 | 193,351 | |||||
| Other current and non-current liabilities | 124,977 | 146,413 | |||||
| Total stockholders’ equity/(deficit) | 47,332 | (34,283) | |||||
| Total liabilities and stockholders’ equity | $ | 1,754,077 | $ | 1,971,325 | |||
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 additional 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 financing costs and gains/(losses) on bond and debt extinguishment, net; (v) allowance for credit losses; (vi) earnings/(losses) in affiliate companies, net of dividends received; (vii) payments for drydock, special survey costs and other capitalized items; (viii) noncontrolling interest; (ix) gain/ (loss) on sale of assets; (x) unrealized (loss)/gain on derivatives; (xi) loss on sale and reclassification to earnings of available-for-sale securities; and (xii) impairment losses. 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 and meet working capital requirements. 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.
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 an indicator of Navios Holdings’ performance.
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 EBITDA of Navios Logistics on a stand-alone basis:
Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations
| September 30, | September 30, | ||||||
| Three Month Period Ended | 2021 | 2020 | |||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||
| Net cash provided by operating activities | $ | 33,033 | $ | 29,775 | |||
| Net increase in operating assets | (6,635) | (10,609) | |||||
| Net increase in operating liabilities | 31,572 | 1,108 | |||||
| Interest expense and finance cost, net | 35,089 | 36,859 | |||||
| Deferred financing costs | (2,248) | (1,974) | |||||
| Allowance for credit losses | (346) | 34 | |||||
| Equity in affiliate companies, net of dividends received | 14,142 | 4,274 | |||||
| Payments for drydock and special survey costs | 2,020 | 1,372 | |||||
| Noncontrolling interest | 10,338 | (967) | |||||
| Loss on bond extinguishment | (822) | — | |||||
| Impairment loss/ loss on sale of vessels, net | — | (7,683) | |||||
| Write-off of Navios Logistics' deferred financing cost for bond and debt extinguishment | — | (4,157) | |||||
| EBITDA | $ | 116,143 | $ | 48,032 | |||
| Impairment loss/ loss on sale of vessels, net | — | 7,683 | |||||
| Write-off of Navios Logistics' deferred financing cost for bond and debt extinguishment | — | 4,157 | |||||
| Adjusted EBITDA | $ | 116,143 | $ | 59,872 | |||
| Three Month Period Ended | September 30, 2021 | September 30, 2020 | |||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||
| Net cash provided by operating activities | $ | 33,033 | $ | 29,775 | |||
| Net cash provided by investing activities | $ | 28,635 | $ | 47,094 | |||
| Net cash used in financing activities | $ | (88,097) | $ | (12,679) | |||
Adjusted EBITDA breakdown
| September 30, | September 30, | ||||
| Three Month Period Ended | 2021 | 2020 | |||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||
| Core shipping operations | $ | 68,402 | $ | 28,129 | |
| Navios Logistics (including noncontrolling interest) | 33,412 | 27,353 | |||
| Equity in net earnings of affiliate companies | 14,329 | 4,390 | |||
| Adjusted EBITDA | $ | 116,143 | $ | 59,872 | |
Navios Logistics EBITDA Reconciliation to Net Income
| September 30, | September 30, | ||||||
| Three Month Period Ended | 2021 | 2020 | |||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||
| Net (loss)/income | $ | (4,405) | $ | 2,673 | |||
| Depreciation and amortization | 8,107 | 7,207 | |||||
| Amortization of deferred drydock and special survey costs | 1,171 | 907 | |||||
| Interest expense and finance cost, net | 14,529 | 12,971 | |||||
| Income tax expense | 3,672 | 405 | |||||
| EBITDA | $ | 23,074 | $ | 24,163 | |||
| Write-off of Navios Logistics' deferred financing cost for bond and debt extinguishment | — | 4,157 | |||||
| Adjusted EBITDA | $ | 23,074 | $ | 28,320 | |||
Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations
| September 30, | September 30, | |||||||
| Nine Month Period Ended | 2021 | 2020 | ||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||||
| Net cash provided by operating activities | $ | 31,668 | $ | 35,305 | ||||
| Net increase/ (decrease) in operating assets | 13,967 | (20,542) | ||||||
| Net decrease/ (increase) in operating liabilities | 48,588 | (31,284) | ||||||
| Interest expense and finance cost, net | 107,459 | 99,920 | ||||||
| Deferred financing costs | (6,859) | (5,707) | ||||||
| Allowance for credit losses | (595) | (541) | ||||||
| Equity in affiliate companies, net of dividends received | 54,646 | 12,954 | ||||||
| Payments for drydock and special survey costs | 17,629 | 15,501 | ||||||
| Noncontrolling interest | 9,578 | (7,850) | ||||||
| Gain on bond extinguishment | 1,051 | 11,204 | ||||||
| Impairment loss/ loss on sale of vessels, net | (25,861) | (27,898) | ||||||
| Impairment loss on investment in affiliate | — | (6,650) | ||||||
| Impairment of loan receivable from affiliate company | — | (6,050) | ||||||
| Write-off of Navios Logistics’ deferred finance cost for bond extinguishment | — | (4,157) | ||||||
| EBITDA | $ | 251,271 | $ | 64,205 | ||||
| Impairment loss/ loss on sale of vessels, net | 25,861 | 27,898 | ||||||
| Equity in net earnings of affiliate companies due to Navios Partners' Merger | (25,852) | — | ||||||
| Other items from affiliate companies | — | 6,844 | ||||||
| Impairment of loan receivable from affiliate company | — | 6,050 | ||||||
| Impairment loss on investment in affiliate company | — | 6,650 | ||||||
| Write-off of Navios Logistics’ deferred finance cost for bond extinguishment | — | 4,157 | ||||||
| Adjusted EBITDA | $ | 251,280 | $ | 115,804 | ||||
| Nine Month Period Ended | September 30, 2021 | September 30, 2020 | |||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||||
| Net cash provided by operating activities | $ | 31,668 | $ | 35,305 | |||
| Net cash provided by/(used in) investing activities | $ | 119,709 | $ | (9,451) | |||
| Net cash (used in)/provided by financing activities | $ | (215,821) | $ | 14,681 | |||
Adjusted EBITDA breakdown
| September 30, | September 30, | ||||
| Nine Month Period Ended | 2021 | 2020 | |||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | |||
| Core shipping operations | $ | 144,826 | $ | 24,931 | |
| Navios Logistics (including noncontrolling interest) | 77,383 | 69,681 | |||
| Equity in net earnings of affiliate companies | 29,071 | 21,192 | |||
| Adjusted EBITDA | $ | 251,280 | $ | 115,804 | |
Navios Logistics EBITDA Reconciliation to Net Income
| September 30, | September 30, | |||||
| Nine Month Period Ended | 2021 | 2020 | ||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||
| Net (loss)/income | $ | (2,306) | $ | 21,700 | ||
| Depreciation and amortization | 23,647 | 21,752 | ||||
| Amortization of deferred drydock and special survey costs | 2,959 | 2,941 | ||||
| Interest expense and finance cost, net | 40,109 | 26,739 | ||||
| Income tax expense | 3,396 | 242 | ||||
| EBITDA | $ | 67,805 | $ | 73,374 | ||
| Write-off of Navios Logistics’ deferred financing cost for bond and debt extinguishment | — | 4,157 | ||||
| Adjusted EBITDA | $ | 67,805 | $ | 77,531 | ||
EXHIBIT II
Owned Vessels
| Vessel Name | Vessel Type | Year Built | Deadweight (in metric tons) | |||
| Navios Ulysses | Ultra Handymax | 2007 | 55,728 | |||
| Navios Celestial | Ultra Handymax | 2009 | 58,063 | |||
| Navios Vega | Ultra Handymax | 2009 | 58,792 | |||
| 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 | |||
| Rainbow N | Panamax | 2011 | 79,642 | |||
| Jupiter N | Panamax | 2011 | 93,062 | |||
| Navios Stellar | Capesize | 2009 | 169,001 | |||
| 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 Canary | Capesize | 2015 | 180,528 | |||
| Navios Corali | Capesize | 2015 | 181,249 |
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 | ||||
| Navios Galaxy II | Panamax | 2020 | 81,789 | Yes | ||||
| Navios Magellan II | Panamax | 2020 | 82,037 | Yes |
| (1) | Generally, Navios Holdings may exercise its purchase option after three to five years of service. | |
Long-term Charter-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 Venus | Ultra Handymax | 2015 | 61,339 | Yes | ||||
| 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 | ||||
| Navios Gemini | Panamax | 2018 | 81,704 | No (3) | ||||
| Navios Horizon I | Panamax | 2019 | 81,692 | No (3) | ||||
| Navios Felix | Capesize | 2016 | 181,221 | Yes | ||||
| Navios Obeliks | Capesize | 2012 | 181,415 | 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. | |
