UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
Dated: September 15, 2016
Commission File No. 001-33311
NAVIOS MARITIME HOLDINGS INC.
7 Avenue de Grande Bretagne, Office 11B2
Monte Carlo, MC 98000 Monaco
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F:
Form 20-F x Form 40-F ¨
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Yes ¨ No x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Yes ¨ No x
Financial Results
On August 25, 2016, Navios Maritime Holdings Inc. (“Navios Holdings”) issued a press release announcing the operational and financial results for the second quarter and six months ended June 30, 2016. A copy of the press release is furnished as Exhibit 99.1 to this Report and is incorporated herein by reference.
Continued Listing Standards Notice
On September 1, 2016, Navios Holdings issued a press release announcing it received notice from the New York Stock Exchange, Inc. (the “NYSE”) indicating that Navios Holdings has regained compliance with the NYSE’s continued listing standards. A copy of the press release is furnished as Exhibit 99.2 to this Report and is incorporated herein by reference.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
| NAVIOS MARITIME HOLDINGS INC. | ||
| By: |
/s/ Angeliki Frangou | |
| Angeliki Frangou | ||
| Chief Executive Officer | ||
| Date: September 15, 2016 | ||
EXHIBIT INDEX
| Exhibit No. |
Exhibit | |
| 99.1 | Press release, dated August 25, 2016: Navios Maritime Holdings Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2016 | |
| 99.2 | Press release, dated September 1, 2016: Navios Maritime Holdings Inc. Regains Compliance with NYSE Continued Listing Requirements | |
Exhibit 99.1
News Release
Navios Maritime Holdings Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2016
| • | $105.7 million Revenue for Q2 2016 |
| • | $40.1 million net cash from operating activities for Q2 2016 |
| • | $31.1 million EBITDA for Q2 2016 |
| • | $143.2 million of cash as of June 30, 2016 |
| • | Positioned to weather difficult market |
| • | Solid operational performance - ~100% fleet utilization |
| • | Low cost structure |
MONACO, Aug. 25, 2016 (GLOBE NEWSWIRE) — Navios Maritime Holdings Inc. (“Navios Holdings” or “the Company”) (NYSE:NM), a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the second quarter and six months ended June 30, 2016.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, “Navios Holdings had a solid second quarter performance, earning $31.0 million in EBITDA, which was relatively in line with 2015. We have $143.2 million of cash as of June 30, 2016 and no material debt maturities until 2019.”
Angeliki Frangou continued: “Our scale provides us with significant operating leverage. Navios Holdings’ opex is estimated to be approximately 42% less than the industry average. During the last twelve months, we have also reduced general and administrative expenses by approximately 30%, which we expect to reduce further to a total of 40% by year end. This reduction makes us one of the lowest cost operators among publicly listed dry bulk shipping companies.”
HIGHLIGHTS
Time Charter Coverage
Navios Holdings controls a fleet of 61 vessels totaling 6.3 million dwt, of which 40 are owned and 21 are chartered-in under long-term charters (collectively, the “Core Fleet”). Navios Holdings currently operates 57 vessels (19 Capesize, 18 Panamax, 18 Ultra Handymax and two Handysize vessels) totaling 5.9 million dwt. The current average age of the operating fleet is 7.8 years. Additionally, Navios Holdings has four newbuilding charter-in vessels expected to be delivered at various dates beginning in the fourth quarter of 2016 until 2017.
As of August 22, 2016, Navios Holdings has chartered-out 86.6% and 34.2% of available days for the remaining six months of 2016 and for 2017, respectively (including index-linked charters), which are expected to generate $57.1 million and $20.9 million in base revenue, respectively. The average daily charter-out base rate for the Core Fleet is $8,813 and $15,319 for the remaining six months of 2016 and for 2017, respectively. The average daily charter-in rate for the active long-term charter-in vessels for the remaining six months of 2016 is estimated at $12,421.
The above figures do not include the fleet 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 fleet of Navios Logistics.
Earnings Highlights
See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA of Navios Holdings (including Navios Logistics), and of Navios Logistics (on a stand-alone basis), and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.
Second Quarter 2016 and 2015 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The second quarter 2016 and 2015 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
| Three Month Period Ended June 30, 2016 |
Three Month Period Ended June 30, 2015 |
|||||||
| (unaudited) | (unaudited) | |||||||
| Revenue |
$ | 105,733 | $ | 119,839 | ||||
| Net Loss |
$ | (26,416 | ) | $ | (24,813 | ) | ||
| Net cash provided by operating activities |
$ | 11,197 | $ | 2,095 | ||||
| EBITDA |
$ | 31,054 | $ | 32,705 | ||||
| Basic Loss per Share |
$ | (0.29 | ) | $ | (0.27 | ) | ||
Revenue from dry bulk vessel operations for the three months ended June 30, 2016 was $47.0 million as compared to $53.6 million for the same period during 2015. The decrease in dry bulk revenue was mainly attributable to (i) a decrease in available days of our fleet by 648 days, mainly due to a decrease in short-term charter-in and long-term charter-in fleet available days; and (ii) the decline in the freight market during 2016, as compared to the same period in 2015.
Revenue from the logistics business was $58.8 million for the three months ended June 30, 2016 as compared to $66.2 million for the same period during 2015. The decrease was mainly attributable to (i) a decrease in sales of products in the liquid terminal, due to lower volume and lower price of products sold;(ii) a decrease in products transported in the dry and liquid port terminals; and (iii) a decrease in the number of available days of the cabotage fleet.
EBITDA of Navios Holdings for the three months ended June 30, 2016 decreased by $1.6 million to $31.1 million as compared to $32.7 million for the same period of 2015. The $1.6 million decrease in EBITDA was primarily due to (i) a $14.1 million decrease in revenue; and (ii) a $14.6 million decrease in equity in net earnings from affiliated companies. This overall decrease of $28.7 million was partially mitigated by (i) a $21.8 million decrease in time charter, voyage and logistics business expenses; (ii) a $1.4 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $2.4 million decrease in general and administrative expenses (excluding share-based compensation expenses);(iv) a $0.8 million decrease in other expense, net; and (v) a $0.7 million decrease in net income attributable to the noncontrolling interest.
EBITDA of Navios Logistics was $20.7 million for the three month period ended June 30, 2016 as compared to $22.7 million for the same period in 2015.
Net Loss of Navios Holdings for the three months ended June 30, 2016 was $26.4 million as compared to $24.8 million for the same period of 2015. The $1.6 million increase in Net Loss was mainly due to (i) a decrease in EBITDA by $1.6 million; (ii) a decrease in income tax benefit of $1.0 million; (iii) an increase in amortization for deferred drydock and special survey costs of $0.4 million; and (iv) an increase in share-based compensation expense of $0.1 million. This overall increase was partially mitigated by (i) a decrease in interest expense and finance cost, net by $1.1 million; and (ii) a decrease in depreciation and amortization by $0.4 million.
First Half of 2016 and 2015 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The information for the six month period ended June 30, 2016 and 2015 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
| Six Month Period Ended June 30, 2016 |
Six Month Period Ended June 30, 2015 |
|||||||
| (unaudited) | (unaudited) | |||||||
| Revenue |
$ | 207,220 | $ | 238,119 | ||||
| Net Loss |
$ | (33,881 | ) | $ | (51,491 | ) | ||
| Net cash provided by operating activities |
$ | 40,137 | $ | 1,739 | ||||
| EBITDA |
$ | 76,478 | $ | 58,946 | ||||
| Basic Loss per Share |
$ | (0.39 | ) | $ | (0.57 | ) | ||
Revenue from dry bulk vessel operations for the six months ended June 30, 2016 was $93.3 million as compared to $106.8 million for the same period during 2015. The decrease in drybulk revenue was mainly attributable to the decline in the freight market during 2016, as compared to the same period in 2015.
Revenue from the logistics business was $114.0 million for the six months ended June 30, 2016 as compared to $131.3 million for the same period of 2015. This decrease was mainly attributable to (i) a decrease in sales of products in the liquid terminal, due to lower volume and lower price of products sold; (ii) a decrease in products transported in the dry and liquid port terminals; and (iii) a decrease in the number of available days of the cabotage fleet. This overall decrease was partially mitigated by an increase in dry and liquid cargoes transported in the barge business.
EBITDA of Navios Holdings for the six month period ended June 30, 2016 increased by $17.6 million to $76.5 million as compared to $58.9 million for the same period of 2015. The $17.6 million increase in EBITDA was primarily due to (i) a $45.3 million decrease in time charter, voyage and logistics business expenses; (ii) a $2.5 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $2.9 million
decrease in general and administrative expenses (excluding share-based compensation expenses); and (iv) a $14.3 million increase in other income, net. This overall increase of $65.0 million was partially mitigated by (i) a $30.9 million decrease in revenue; (ii) a $15.5 million decrease in equity in net earnings from affiliated companies; and (iii) a $1.0 million increase in net income attributable to the noncontrolling interest.
EBITDA of Navios Logistics was $41.8 million for the six month period ended June 30, 2016 as compared to $38.3 million for the same period in 2015.
Net Loss of Navios Holdings for the six months ended June 30, 2016 was $33.9 million as compared to $51.5 million for the same period of 2015. The $17.6 million decrease in Net Loss was mainly due to (i) an increase in EBITDA of $17.6 million; (ii) a decrease in interest expense and finance cost, net of $1.5 million; and (iii) a decrease in depreciation and amortization of $1.7 million. This decrease in Net Loss was partially mitigated by (i) an increase in income tax expense of $2.3 million; (ii) an increase of $0.7 million in amortization for deferred drydock and special survey costs; and (iii) an increase of $0.2 million in share-based compensation expense.
Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of the Navios Holdings’ dry bulk operations (excluding the Navios Logistics fleet) and its fleet performance for the three and six month periods ended June 30, 2016 and 2015, respectively.
| Three Month Period Ended June 30, 2016 |
Three Month Period Ended June 30, 2015 |
Six Month Period Ended June 30, 2016 |
Six Month Period Ended June 30, 2015 |
|||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Available Days (1) |
5,198 | 5,846 | 11,158 | 11,184 | ||||||||||||
| Operating Days (2) |
5,181 | 5,793 | 11,037 | 11,077 | ||||||||||||
| Fleet Utilization (3) |
99.7 | % | 99.1 | % | 98.9 | % | 99.0 | % | ||||||||
| Equivalent Vessels (4) |
57 | 64 | 61 | 62 | ||||||||||||
| TCE (5) |
$ | 8,445 | $ | 7,457 | $ | 7,678 | $ | 7,332 | ||||||||
| (1) | Available days for the fleet are total calendar days the vessels were in Navios Holdings’ possession for the relevant period after subtracting off-hire days associated with major repairs, drydocking or special surveys. 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) | Time charter equivalent rate (“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, August 25, 2016, at 8:30 am ET, at which time Navios Holdings’ senior management will provide highlights and commentary on earnings results for the second quarter and six months ended June 30, 2016.
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, August 25, 2016, at 8:30 am ET
Call Title: Navios Holdings Q2 2016 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 2750 5133
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: 27505133
This call will be simultaneously Webcast. The Webcast will be available on the Navios Holdings website, www.navios.com, under the “Investors” section. The Webcast will be archived and available at the same Web address for two weeks following the call.
About Navios Maritime Holdings Inc.
Navios Maritime Holdings Inc. (NYSE:NM) is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of dry bulk commodities including iron ore, coal and grain. For more information about Navios Holdings please visit our website: www.navios.com.
About Navios South American Logistics Inc.
Navios South American Logistics Inc. is one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia region river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics serves the storage and marine transportation needs of its petroleum, agricultural and mining customers through its port terminals, river barge and coastal cabotage operations. For more information about Navios Logistics please visit its website: www.navios-logistics.com.
About Navios Maritime Partners L.P.
Navios Partners (NYSE:NMM) is a publicly traded master limited partnership which owns and operates container and dry cargo vessels. For more information, please visit its website at www.navios-mlp.com.
About Navios Maritime Acquisition Corporation
Navios Acquisition (NYSE:NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. For more information about Navios Acquisition, please visit its website: www.navios-acquisition.com.
About Navios Maritime Midstream Partners L.P.
Navios Maritime Midstream Partners L.P. (NYSE:NAP) is a publicly traded master limited partnership which owns and operates crude oil tankers under long-term employment contracts. For more information, please visit its website at www.navios-midstream.com.
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, including 2016 and 2017 cash flow generation, future contracted revenues, potential capital gains, our ability to take advantage of dislocation in the market, and Navios Holdings’ growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “may,” “expects,” “intends,” “plans,” “believes,” “anticipates,” “hopes,” “estimates,” and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Holdings at the time these statements were made. Although Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Holdings. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry cargo shipping sector in general and the demand for our Panamax, Capesize and UltraHandymax 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; 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 Form 20-F’s and Form 6-K’s. 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.
EXHIBIT I
NAVIOS MARITIME HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of U.S. dollars — except share and per share data)
| Three Month Period Ended June 30, 2016 |
Three Month Period Ended June 30, 2015 |
Six Month Period Ended June 30, 2016 |
Six Month Period Ended June 30, 2015 |
|||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Revenue |
$ | 105,733 | $ | 119,839 | $ | 207,220 | $ | 238,119 | ||||||||
| Administrative fee revenue from affiliates |
5,463 | 3,882 | 10,945 | 7,804 | ||||||||||||
| Time charter, voyage and logistics business expenses |
(36,095 | ) | (57,856 | ) | (82,476 | ) | (127,790 | ) | ||||||||
| Direct vessel expenses(1) |
(34,685 | ) | (35,748 | ) | (64,759 | ) | (66,565 | ) | ||||||||
| General and administrative expenses incurred on behalf of affiliates |
(5,463 | ) | (3,882 | ) | (10,945 | ) | (7,804 | ) | ||||||||
| General and administrative expenses(2) |
(6,392 | ) | (8,668 | ) | (12,830 | ) | (15,479 | ) | ||||||||
| Depreciation and amortization |
(27,132 | ) | (27,479 | ) | (46,959 | ) | (48,684 | ) | ||||||||
| Interest expense and finance cost, net |
(26,698 | ) | (27,838 | ) | (54,448 | ) | (55,876 | ) | ||||||||
| Other (expense)/income, net |
(2,530 | ) | (3,321 | ) | 9,134 | (5,235 | ) | |||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss before equity in net earnings of affiliated companies |
(27,799 | ) | (41,071 | ) | (45,118 | ) | (81,510 | ) | ||||||||
| Equity in net earnings of affiliated companies |
3,424 | 17,968 | 16,376 | 31,880 | ||||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss before taxes |
$ | (24,375 | ) | $ | (23,103 | ) | $ | (28,742 | ) | $ | (49,630 | ) | ||||
| Income tax benefit/(expense) |
621 | 1,695 | (424 | ) | 1,843 | |||||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss |
(23,754 | ) | (21,408 | ) | (29,166 | ) | (47,787 | ) | ||||||||
| Less: Net income attributable to the noncontrolling interest |
(2,662 | ) | (3,405 | ) | (4,715 | ) | (3,704 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|||||||||
| Net loss attributable to Navios Holdings common stockholders |
$ | (26,416 | ) | $ | (24,813 | ) | $ | (33,881 | ) | $ | (51,491 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Loss attributable to Navios Holdings common stockholders, basic and diluted |
$ | (30,387 | ) | $ | (28,906 | ) | $ | (41,822 | ) | $ | (59,657 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Basic and diluted net losses per share attributable to Navios Holdings common stockholders |
$ | (0.29 | ) | $ | (0.27 | ) | $ | (0.39 | ) | $ | (0.57 | ) | ||||
|
|
|
|
|
|
|
|
|
|||||||||
| Weighted average number of shares, basic and diluted |
106,009,049 | 105,401,820 | 106,022,826 | 105,251,590 | ||||||||||||
| (1) | Includes expenses of Navios Logistics of $21.4 million and $22.9 million for the three months ended June 30, 2016 and 2015, respectively and $38.1 million and $41.0 million for the six months ended June 30, 2016 and 2015, respectively. |
| (2) | Includes expenses of Navios Logistics of $35 million and $39 million for the three months ended June 30, 2016 and 2015, respectively and $6.8 million and $7.5 million for the six months ended June 30, 2016 and 2015, respectively. |
NAVIOS MARITIME HOLDINGS INC.
Other Financial Data
| June 30, | December 31, | |||||||
| 2016 | 2015 | |||||||
| (unaudited) | (unaudited) | |||||||
| ASSETS |
||||||||
| Cash and cash equivalents, including restricted cash |
$ | 143,200 | $ | 176,892 | ||||
| Other current assets |
143,766 | 126,067 | ||||||
| Deposits for vessels, port terminals and other fixed assets |
91,669 | 73,949 | ||||||
| Vessels, port terminal and other fixed assets, net |
1,868,668 | 1,823,961 | ||||||
| Other noncurrent assets |
449,578 | 447,151 | ||||||
| Goodwill and other intangibles |
304,814 | 310,793 | ||||||
|
|
|
|
|
|||||
| Total assets |
$ | 3,001,695 | $ | 2,958,813 | ||||
|
|
|
|
|
|||||
| LIABILITIES AND EQUITY |
||||||||
| Current liabilities, including current portion of long-term debt, net |
245,040 | 226,856 | ||||||
| Senior and ship mortgage notes, net |
1,352,860 | 1,350,941 | ||||||
| Long-term debt, net of current portion |
252,520 | 213,423 | ||||||
| Other noncurrent liabilities |
69,184 | 57,041 | ||||||
| Total stockholders’ equity |
1,082,091 | 1,110,552 | ||||||
|
|
|
|
|
|||||
| Total liabilities and stockholders’ equity |
$ | 3,001,695 | $ | 2,958,813 | ||||
|
|
|
|
|
|||||
| Six Month | Six Month | |||||||
| Period Ended | Period Ended | |||||||
| June 30, | June 30, | |||||||
| 2016 | 2015 | |||||||
| (unaudited) | (unaudited) | |||||||
| Net cash provided by operating activities |
$ | 40,137 | $ | 1,739 | ||||
| Net cash used in investing activities |
$ | (112,319 | ) | $ | (18,176 | ) | ||
| Net cash provided by/(used in) financing activities |
$ | 49,299 | $ | (50,753 | ) | |||
Disclosure of Non-GAAP Financial Measures
EBITDA is a non-U.S. GAAP financial measure and should not be used in isolation or as substitution for Navios Holdings’ results calculated in accordance with U.S. GAAP.
EBITDA represents net (loss)/income attributable to Navios Holdings’ common stockholders before interest and finance costs, before depreciation and amortization, before income taxes and before stock-based compensation. We use EBITDA as a liquidity measure and reconcile 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 maybe, 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 other related expenses,(v)provision for losses on accounts receivable,(vi) equity in affiliates, net of dividends received, (vii) payments for drydock and special survey costs, (viii) noncontrolling interest, and (ix) reclassification to earnings of available-for-sale securities and impairment charges. Navios Holdings believes that EBITDA is 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 is 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 has 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 does not reflect changes in, or cash requirements for, working capital needs; (ii) EBITDA does 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 does not reflect any cash requirements for such capital expenditures. Because of these limitations, among others, EBITDA should not be considered as a principal indicator of Navios Holdings’ performance. Furthermore, our calculation of EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.
Navios Logistics’ EBITDA is used to measure its operating performance.
The following tables provide a reconciliation of EBITDA of Navios Holdings (including Navios Logistics) and EBITDA of Navios Logistics on a stand-alone basis:
Navios Holdings Reconciliation of EBITDA to Cash from Operations
| June 30, | June 30, | |||||||
| Three Months Ended | 2016 | 2015 | ||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||||
| Net cash provided by operating activities |
$ | 11,197 | $ | 2,095 | ||||
| Net increase/(decrease) in operating assets |
447 | (27,570 | ) | |||||
| Net (increase)/decrease in operating liabilities |
(3,753 | ) | 18,343 | |||||
| Net interest cost |
26,698 | 27,838 | ||||||
| Deferred finance charges |
(1,411 | ) | (1,046 | ) | ||||
| Provision for losses on accounts receivable |
(43 | ) | 56 | |||||
| Equity in affiliates, net of dividends received |
(783 | ) | 9,109 | |||||
| Payments for drydock and special survey |
1,709 | 7,285 | ||||||
| Noncontrolling interest |
(2,662 | ) | (3,405 | ) | ||||
| Loss on available-for-sale securities |
(345 | ) | — | |||||
|
|
|
|
|
|||||
| EBITDA |
$ | 31,054 | $ | 32,705 | ||||
|
|
|
|
|
|||||
Navios Logistics EBITDA Reconciliation to Net Income
| June 30, | June 30, | |||||||
| Three Months Ended | 2016 | 2015 | ||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||||
| Net income |
$ | 7,362 | $ | 9,412 | ||||
| Depreciation and amortization |
6,387 | 6,591 | ||||||
| Amortization of deferred drydock and special survey costs |
1,787 | 1,752 | ||||||
| Interest expense and finance cost, net |
5,829 | 6,735 | ||||||
| Income tax benefit |
(694 | ) | (1,767 | ) | ||||
|
|
|
|
|
|||||
| EBITDA |
$ | 20,671 | $ | 22,723 | ||||
|
|
|
|
|
|||||
Navios Holdings Reconciliation of EBITDA to Cash from Operations
| June 30, | June 30, | |||||||
| Six Months Ended | 2016 | 2015 | ||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||||
| Net cash provided by operating activities |
$ | 40,137 | $ | 1,739 | ||||
| Net increase/(decrease) in operating assets |
11,776 | (59,508 | ) | |||||
| Net (increase)/decrease in operating liabilities |
(33,156 | ) | 36,630 | |||||
| Net interest cost |
54,448 | 55,876 | ||||||
| Deferred finance charges |
(2,695 | ) | (2,155 | ) | ||||
| Provision for losses on accounts receivable |
(149 | ) | (10 | ) | ||||
| Equity in affiliates, net of dividends received |
8,105 | 14,162 | ||||||
| Payments for drydock and special survey |
3,072 | 15,916 | ||||||
| Noncontrolling interest |
(4,715 | ) | (3,704 | ) | ||||
| Loss on available-for-sale securities |
(345 | ) | — | |||||
|
|
|
|
|
|||||
| EBITDA |
$ | 76,478 | $ | 58,946 | ||||
|
|
|
|
|
|||||
Navios Logistics EBITDA Reconciliation to Net Income
| June 30, | June 30, | |||||||
| Six Months Ended | 2016 | 2015 | ||||||
| (in thousands of U.S. dollars) | (unaudited) | (unaudited) | ||||||
| Net income |
$ | 13,036 | $ | 10,238 | ||||
| Depreciation and amortization |
13,061 | 13,058 | ||||||
| Amortization of deferred drydock and special survey costs |
3,385 | 3,463 | ||||||
| Interest expense and finance cost, net |
12,033 | 13,548 | ||||||
| Income tax expense/(benefit) |
282 | (1,985 | ) | |||||
|
|
|
|
|
|||||
| EBITDA |
$ | 41,797 | $ | 38,322 | ||||
|
|
|
|
|
|||||
EXHIBIT II
Owned Vessels
| Vessel Name |
Vessel Type |
Year Built | Deadweight (in metric tons) |
|||||
| Navios Serenity |
Handysize | 2011 | 34,690 | |||||
| Navios Ionian |
Ultra Handymax | 2000 | 52,067 | |||||
| Navios Horizon |
Ultra Handymax | 2001 | 50,346 | |||||
| Navios Herakles |
Ultra Handymax | 2001 | 52,061 | |||||
| Navios Achilles |
Ultra Handymax | 2001 | 52,063 | |||||
| Navios Vector |
Ultra Handymax | 2002 | 50,296 | |||||
| Navios Meridian |
Ultra Handymax | 2002 | 50,316 | |||||
| Navios Mercator |
Ultra Handymax | 2002 | 53,553 | |||||
| Navios Arc |
Ultra Handymax | 2003 | 53,514 | |||||
| Navios Hios |
Ultra Handymax | 2003 | 55,180 | |||||
| Navios Kypros |
Ultra Handymax | 2003 | 55,222 | |||||
| Navios Astra |
Ultra Handymax | 2006 | 53,468 | |||||
| Navios Ulysses |
Ultra Handymax | 2007 | 55,728 | |||||
| Navios Celestial |
Ultra Handymax | 2009 | 58,063 | |||||
| Navios Vega |
Ultra Handymax | 2009 | 58,792 | |||||
| Navios Magellan |
Panamax | 2000 | 74,333 | |||||
| Navios Star |
Panamax | 2002 | 76,662 | |||||
| Navios Northern Star |
Panamax | 2005 | 75,395 | |||||
| Navios Amitie |
Panamax | 2005 | 75,395 | |||||
| Navios Taurus |
Panamax | 2005 | 76,596 | |||||
| Navios Asteriks |
Panamax | 2005 | 76,801 | |||||
| Navios Galileo |
Panamax | 2006 | 76,596 | |||||
| N Amalthia |
Panamax | 2006 | 75,318 | |||||
| N Bonanza |
Panamax | 2006 | 76,596 | |||||
| Navios Avior |
Panamax | 2012 | 81,355 | |||||
| Navios Centaurus |
Panamax | 2012 | 81,472 | |||||
| Navios Sphera |
Panamax | 2016 | 84,872 | |||||
| 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 | |||||
| Navios Mars |
Capesize | 2016 | 181,259 | |||||
Long term Chartered-in Fleet in Operation
| Vessel Name |
Vessel Type |
Year |
Deadweight (in metric tons) |
Purchase | ||||||
| Navios Lyra |
Handysize | 2012 | 34,718 | Yes (2) | ||||||
| Navios Primavera |
Ultra Handymax | 2007 | 53,464 | Yes | ||||||
| Navios Oriana |
Ultra Handymax | 2012 | 61,442 | Yes | ||||||
| Navios Mercury |
Ultra Handymax | 2013 | 61,393 | Yes | ||||||
| Navios Venus |
Ultra Handymax | 2015 | 61,339 | Yes | ||||||
| Navios Aldebaran |
Panamax | 2008 | 76,500 | Yes | ||||||
| Navios Marco Polo |
Panamax | 2011 | 80,647 | Yes | ||||||
| Navios Southern Star |
Panamax | 2013 | 82,224 | Yes | ||||||
| Sea Victory |
Panamax | 2014 | 77,095 | Yes | ||||||
| Navios Sky |
Panamax | 2015 | 82,056 | Yes | ||||||
| Navios Amber |
Panamax | 2015 | 80,994 | Yes | ||||||
| Beaufiks |
Capesize | 2004 | 180,310 | Yes | ||||||
| King Ore |
Capesize | 2010 | 176,800 | Yes | ||||||
| Navios Koyo |
Capesize | 2011 | 181,415 | Yes | ||||||
| Navios Obeliks |
Capesize | 2012 | 181,415 | Yes | ||||||
| Dream Canary |
Capesize | 2015 | 180,528 | Yes | ||||||
| Dream Coral |
Capesize | 2015 | 181,249 | Yes | ||||||
Long-term Chartered-in Fleet to be Delivered
| Vessels |
Vessel Type |
Delivery |
Deadweight (in metric tons) |
Purchase Option | ||||||
| Navios Felix |
Capesize | Q4 2016 | 180,000 | Yes | ||||||
| Navios Coral |
Panamax | Q4 2016 | 84,000 | Yes | ||||||
| Navios Citrine |
Panamax | Q1 2017 | 81,000 | Yes | ||||||
| Navios Dolphin |
Panamax | Q1 2017 | 81,000 | Yes | ||||||
| (1) | Generally, Navios Holdings may exercise its purchase option after three to five years of service. |
| (2) | Navios Holdings holds the initial 50% purchase option on the vessel. |
Contact:
Navios Maritime Holdings Inc.
+1.212.906.8643
investors@navios.com
Navios Maritime Holdings, Inc.
Exhibit 99.2
Navios Maritime Holdings Inc. Regains Compliance with NYSE Continued Listing Requirements
MONACO, Sept. 01, 2016 (GLOBE NEWSWIRE) — Navios Maritime Holdings Inc. (“Navios Holdings” or the “Company”) (NYSE:NM) announced today that, based upon a notice received on September 1, 2016 from the New York Stock Exchange, Inc. (“NYSE”), the Company is once again in compliance with the NYSE’s continued listing requirement of a minimum average closing price of $1.00 per share over a consecutive 30 trading-day period.
At the close of trading on August 31, 2016, the average closing price of the Company’s common stock for the previous 30 trading-days was above $1.00 per share and its closing share price on August 31, 2016 was $1.00. Accordingly, the Company has resumed compliance with all NYSE continued listing requirements.
About Navios Maritime Holdings Inc.
Navios Maritime Holdings Inc. (NYSE:NM) is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain. For more information about Navios Holdings please visit our website: www.navios.com.
Forward-Looking Statements
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 expectations including with respect to the Company’s ability to stay in compliance with the NYSE’s continued listing standards. Although Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable at the time made, 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. 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.
Contact:
Navios Maritime Holdings Inc.
+1.212.906.8643
investors@navios.com
Navios Maritime Holdings, Inc.