Navios Maritime Holdings Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2009
- 99.4% increase in quarterly adjusted EBITDA to $51.3 million
- 39.2% increase in annual adjusted EBITDA to $193.7 million
- 350.9% increase in quarterly adjusted net income to $10.5 million
- Basic EPS of $0.12 for Q4 2009
- Dividend of $0.06 per share for Q4 2009
PIRAEUS, Greece, Feb. 23 /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 fourth quarter and year ended December 31, 2009.
Angeliki Frangou, Chairman and CEO of Navios Holdings, stated, "Our industry entered 2009 facing challenges virtually without precedent. The economic crisis required that Navios focus on its balance sheet, which we did by raising more than $1.3 billion in a mix of equity and long-term debt from the capital markets and commercial banks. Part of these proceeds were used to acquire seven capesize vessels, delivering in 2010, with secured cash flows for the next ten years."
Angeliki Frangou continued, "With our capital expenditures fully funded and less than $60 million of debt maturing in 2010, Navios is well capitalized and positioned to take advantage of opportunities that may develop."
2009 HIGHLIGHTS -- RECENT DEVELOPMENTS
2009 Fundraising Initiatives
Debt
$400.0 million of 8.875% First Preferred Mortgage Notes due 2017
$545.0 million new bank debt
- Long-term debt financing secured for the entire new building program
- Achieved favorable borrowing terms in difficult environment
Equity
$221.1 million mandatorily convertible preferred stock ("MCPS")
- Preferred stock issued for acquiring vessels having significant cash flow
- $87.0 million issued in 2009
- $134.1 million to be issued in 2010/2011
- 357,142 common shares issued on converting preferred stock in December 2009 at $14.0 per share
- No common shares issued in the market during credit crisis
- Shareholders protected from undue dilution – 14% dilution scheduled over a ten-year period.
Liquidity
Navios Holdings received approximately $130.0 million from dropdown of vessels to Navios Maritime Partners L.P. ("Navios Partners"). These transactions allowed Navios Holdings to monetize certain tangible and intangible assets in "all cash" transactions while keeping a residual interest in the vessels through its ownership interest in Navios Partners.
Navios Holdings' Core Fleet Highlights
Expected EBITDA figures assume 360 revenue days and $5,000/$4,500 operating expenses per day for Capesize/Ultra-Handymax, respectively.
2009 New Build Vessel Deliveries
During 2009 Navios Holdings took delivery of eight Capesize and two Ultra-Handymax vessels as follows:
Daily Charter-out Vessel Type / DWT Delivery Date rate (net) Charter Term Capesize / Navios Bonavis 180,022 06/29/2009 $47,400 5 years Capesize / Navios Happiness 180,022 07/23/2009 $55,100 5 years Capesize / Navios Pollux 180,727 07/24/2009 $42,250 10 years Capesize / Navios Aurora II 169,031 11/25/2009 $41,325 10 years Capesize / $37,500 / Navios Lumen 180,661 12/10/2009 $39,830 /$39,330 8 years Capesize / Navios Phoenix 180,242 12/21/2009 $36,575 1 year Capesize / Navios Stellar 169,001 12/23/2009 $35,874 7 years Capesize / Navios Antares 169,059 01/20/2010 $38,000 5 years Ultra- Handymax/ Navios Vega 58,792 02/18/2009 $12,350 2 years Ultra- Handymax/ Navios Celestial 58,063 09/18/2009 $17,550 2 years
The Capesize vessels have an average charter out period of about 6.4 years and are expected to generate annual EBITDA of approximately $106.1 million. The two Ultra-Handymaxes have an average charter out term of two years and are expected to generate annual EBITDA of approximately $7.4 million.
2010 New Build Capesize Deliveries
As part of its new building program, Navios Holdings expects the delivery of seven Capesize vessels in 2010 and 2011 as follows.
Anticipated Charter-out Delivery rate per day Vessel Date DWT (net) Charter Term Profit Share Navios Fulvia 08/2010 180,000 $50,588 5 years N/A Navios Melodia 07/2010 180,000 $29,356 12 years 50/50 in excess of $37,500 Navios Buena Ventura 09/2010 180,000 $29,356 10 years 50/50 in excess of $38,500 Navios Luz 10/2010 180,000 $29,356 10 years 50/50 in excess of $38,500 Navios Etoile 10/2010 180,000 $29,356 10 years 50/50 in excess of $38,500 Navios Bonheur 11/2010 180,000 $29,356 12 years 50/50 in excess of $37,500 Navios TBN: Capesize 03/2011 180,000 $27,431 12 years N/A
The effective acquisition price, considering the use of MCPS was $423.1 million or $60.4 million per vessel, and the total acquisition price is completely funded. These vessels have been chartered to creditworthy parties for an average term of more than 10 years and are expected to generate annual EBITDA of $68.0 million, or $630.0 million during the term of the charters. These charters are insured by an AA+ rated EU governmental agency.
Sale of Navios Hyperion
On January 8, 2010, Navios Holdings sold the Navios Hyperion, a Panamax vessel to Navios Partners for $63.0 million in cash.
Delivery of Navios Antares
On January 20, 2010, the Navios Antares, a 169,059 dwt Capesize vessel, was delivered to Navios Holdings' owned fleet from a South Korean Shipyard.
Agreement to Acquire New Capesize Vessel
In February 2010, Navios Holdings agreed to acquire a new build 180,000 dwt Capesize vessel for a nominal price of $55.5 million, payable $52.5 million in cash and $3.0 million in the form of mandatorily convertible preferred stock. The vessel is under construction with a South Korean Shipyard and scheduled for delivery in the first quarter of 2011. The vessel is subject to a 12-year charter to a quality counter party for $27,431 (net) daily rate. It is anticipated that this charter will generate annual EBITDA of $8.1 million and cumulative EBITDA of $92.6 million.
Liquidity
Net Debt to Total Capitalization was 52.6% on December 31, 2009. Navios Holdings' total liquidity, including bank lines, at December 31, 2009 was approximately $382.1 million. Navios Holdings has no unfunded capital expenditures for either 2010 or 2011. In addition, its debt maturities are less than $65.0 million and $130.0 million in 2010 and 2011, respectively.
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 February 19, 2010, Navios Holdings had contracted 89.4%, 65.9%, 57.0% and 47.9% of its available days on a charter-out basis for 2010, 2011, 2012 and 2013, respectively, equivalent to $303.1 million, $300.3 million, $284.6 million and $246.8 million in revenue, respectively. The average contractual daily charter-out rate for the core fleet is $28,313, $32,913, $34,118 and $35,006 for 2010, 2011, 2012 and 2013, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2010 is $10,079.
The above figures do not include vessels servicing the Contracts of Affreightment ("COA") and Logistics businesses.
Fleet Profile
Navios Holdings controls a fleet of 60 vessels totaling 6.6 million dwt, of which 33 are owned and 27 are chartered-in under long-term charters. Navios Holdings currently operates 43 vessels (14 Capesize, 12 Panamax, 16 Ultra Handymax and one Handysize product tanker vessel) totaling 4.3 million dwt and has 17 newbuildings to be delivered. These vessels are expected to be delivered at various dates through 2013. The average age of the operating fleet is 4.4 years.
Exhibit II displays the "Core Fleet" profile of Navios Holdings.
Navios South American Logistics Inc. ("Navios Logistics") Highlights
In June 2009, Navios Logistics took delivery of Makenita H, a 17,000 dwt double hulled product oil tanker which was chartered out for three years which commenced on its delivery. In February 2010, Navios Logistics took delivery of Sara H, a 9,000 dwt double hulled product oil tanker, which is chartered out for three years commencing on delivery.
Navios Logistics' dry port terminal in Uruguay recorded a record level of throughput for the fiscal year 2009 which amounted to 3,055,400 metric tons.
Navios Partners Highlights
On February 11, 2010, Navios Holdings received $4.6 million which represents the cash distribution for the fourth quarter of 2009 from Navios Partners. The total cash distribution received during the fiscal year 2009 was $18.1 million.
Financial Highlights
- Adjusted EBITDA increased by 99.4% to $51.3 million in the fourth quarter of 2009 from $25.7 million in the same period in 2008
- Adjusted EBITDA increased by 39.2% to $193.7 million in the year ended December 31, 2009 from $139.2 million in the same period in 2008
- Adjusted net income increased by 350.9% to $10.5 million in the fourth quarter of 2009 from $4.2 million loss in the same period in 2008.
- Stockholders' Equity increased by 14.9% to $925.5 million at December 31, 2009 compared to $805.8 million at December 31, 2008
Dividend Policy
The Board of Directors declared a quarterly cash dividend for the fourth quarter of 2009 of $0.06 per share of common stock. This dividend is payable on April 8, 2010 to stockholders of record as of March 16, 2010. 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.
Financial Results
For the following results and the selected financial data presented herein, Navios Holdings has compiled consolidated statements of income for the three and twelve month periods ended December 31, 2009 and 2008. The information was derived from the unaudited 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.
Fourth Quarter 2009 Results (in thousands of U.S. dollars, unless otherwise stated, except per share data):
Three Months Three Months ended ended ------------ ------------ December 31, December 31, 2009 2008 ------------ ------------ Revenue $148,730 $214,175 EBITDA $55,284 $24,350 Adjusted EBITDA(*) $51,289 $25,721 Net income (loss) $12,486 $(5,563) Adjusted net income (loss) (**) $10,517 $(4,192) Basic EPS $0.12 $(0.06) Adjusted Basic EPS (**) $0.11 $(0.04) (*) Adjusted EBITDA for the three months ended December 31, 2009, excludes $4.0 million gain on sale of Navios Apollon. Adjusted EBITDA, for the three months ended December 31, 2008, excludes: $1.5 million cancellation fee and $0.1 million gain on sale of assets. (**) Adjusted Net income and Adjusted Basic EPS for the three months ended December 31, 2009, exclude: (i) $4.0 million gain on sale of Navios Apollon and (ii) $2.0 million write off of deferred financing costs due to the partial repayment of outstanding indebtedness following the issuance of the secured bond. Adjusted Net income and Adjusted Basic EPS, for the three months ended December 31, 2008, excludes: $1.5 million cancellation fee and $0.1 million gain on sale of assets.
Revenue from vessel operations for the three months ended December 31, 2009 was $113.6 million as compared to $187.0 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 33.2% to $24,120 per day in the fourth quarter of 2009 from $36,088 per day in the same period of 2008 and b) the decrease in the available days for the fleet by 17.1% to 4,068 in the fourth quarter of 2009 from 4,910 days in the same period of 2008. The decrease in available days was mainly attributable to the significantly reduced short term fleet activity by 1,322 days, from 1,885 days in the fourth quarter of 2008 to 563 days in the fourth quarter of 2009. This decrease was mitigated by an increase in available days of the owned fleet by 484 days mainly due to the new Capesize deliveries in the fourth quarter of 2009 compared to the same period in 2008.
Revenue from the logistics business was $35.1 million for the three months ended December 31, 2009 as compared to $27.2 million during the same period of 2008. This increase was mainly due to the increased fleet of Navios Logistics and the increased operations of its liquid port compared to the same period of 2008.
EBITDA for the three months of 2009 increased by $30.9 million to $55.3 million compared to $24.4 million for the fourth quarter of 2008. The $30.9 million increase in EBITDA was primarily due to a decrease in time charter, voyage and logistic business expenses by $84.9 million from $168.7 million in the fourth quarter of 2008 to $83.8 million in the same period in 2009, a decrease in losses from derivatives by $3.1 million from $5.5 million loss for the fourth quarter of 2008 to $2.4 million loss for the same period in 2009, an increase in equity in net earnings from affiliated companies by $4.1 million, an increase in gain on sale of assets by $3.9 million, a decrease in net other expenses by $1.2 million. This overall variance of $97.2 million was mitigated by a decrease in revenue by $65.4 million from $214.2 million in the fourth quarter of 2008 to $148.7 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 $0.6 million from $7.1 million in the fourth quarter of 2008 to $7.7 million for the same period in 2009, and a decrease in noncontrolling interests by $0.3 million.
EBITDA of Navios Logistics was $3.8 million for the three months ended December 31, 2009 as compared to $3.2 million during the same period in 2008.
Net income for the three months ended December 31, 2009 was $12.5 million as compared to $5.6 million loss for the comparable period of 2008. The increase of net income by $18.1 million was mainly due to the increase by $30.9 million of EBITDA discussed above, and $1.0 million decrease in income tax. These were mitigated by an increase of depreciation and amortization by $7.0 million, the increase in net interest expense by $6.5 million, the increase in amortization for drydock and special survey costs by $0.2 million, and a $0.1 million increase in share-based compensation.
Year ended December 31, 2009 Results (in thousands of U.S. dollars, unless otherwise stated, except per share data):
Year ended Year ended ---------- ---------- December 31, 2009 December 31, 2008 ----------------- ----------------- Revenue $598,676 $1,246,062 EBITDA $206,801 $165,478 Adjusted EBITDA (*) $193,712 $139,161 Net Income $67,934 $118,527 Adjusted Net Income (**) $56,871 $34,961 Basic EPS $0.68 $1.14 Adjusted Basic EPS(**) $0.57 $0.34 (*) Adjusted EBITDA, for year ended December 31, 2009, excludes: (i) $20.8 million gain on sale of assets, (ii) $6.1 million non cash compensation from Navios Partners, and (iii) $13.8 million unrealized mark-to-market losses on common units of Navios Partners, accounted for as available for sale securities. Adjusted EBITDA, for the year ended December 31, 2008, excludes: $27.8 million gain on sale of assets and subsidiary, and a $1.5 million cancellation fee. (**) Adjusted Net Income and Adjusted Basic EPS also exclude the items described above. Adjusted Net income and Adjusted Basic EPS for the year ended December 31, 2009, were further adjusted to exclude $2.0 million write off of deferred financing costs due to the partial repayment of outstanding indebtedness following the issuance of the secured bond. Adjusted Net Income and Adjusted Basic EPS for the year ended December 31, 2008 were further adjusted to exclude a $57.2 million write-off of deferred Belgian taxes.
Revenue from vessel operations for the year ended December 31, 2009 was $459.8 million as compared to $1,138.3 million for the same period during 2008. The decrease in revenue was mainly attributable to a) the decrease in TCE per day by 43.3% to $25,821 per day in 2009 from $45,566 per day in the same period of 2008 and b) the decrease in the available days for the fleet by 31.7% to 15,588 in 2009 from 22,817 days in the same period of 2008. The decrease in available days was mainly attributable to the significantly reduced short term fleet activity by 8,478 days, from 11,100 days in 2008 to 2,622 days in 2009. This decrease was partially mitigated by an increase in available days of the owned fleet by 1,181 days mainly due to the new Capesize deliveries in 2009 compared to the same period in 2008.
Revenue from the logistics business was $138.9 million in 2009 as compared to $107.8 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 year ended December 31, 2009 increased by $41.3 million to $206.8 million compared to $165.5 million for the same period in 2008. The $41.3 million increase in EBITDA was primarily due to a decrease in time charter, voyage and logistic business expenses by $712.4 million from $1,066.2 million in 2008 to $353.8 million in the same period in 2009, an increase in equity in net earnings from affiliated companies by $11.8 million from $17.4 million in 2008 to $29.2 million for the same period of 2009. This overall favorable variance of $724.2 million was mitigated mainly by a decrease in revenue by $647.4 million from $1,246.1 million in 2008 to $598.7 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 $4.3 million from $24.7 million in 2008 to $29.0 million for the same period in 2009, an increase in general and administrative expenses by $4.4 million from $37.3 million in 2008 to $41.7 million for the same period in 2009 (excluding $2.2 million and $2.7 million share-based compensation for 2009 and 2008, respectively), a decrease in gain from derivatives by $7.7 million from $8.1 million in 2008 to $0.4 million for the same period in 2009, an increase in net other expenses by $10.8 million, an increase in income attributable to noncontrolling interests by $1.3 million, and a decrease in gains from sale of assets by $7.0 million.
EBITDA of Navios Logistics was $29.6 million for the year ended December 31, 2009 as compared to $27.0 million during the same period in 2008.
Net income for the year ended December 31, 2009 was $67.9 million as compared to $118.5 million for the comparable period of 2008. The decrease of net income by $50.6 million was mainly due to the increase in depreciation and amortization by $16.8 million, the increase in net interest expense by $20.6 million, the increase in drydock amortization by $0.5 million and the decrease in income taxes by $54.5 million mainly due to the write-off of deferred income taxes of $57.2 million in 2008. These were mitigated by the increase of $41.3 million in EBITDA discussed above, as well as the $0.5 million decrease in share-based compensation.
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 twelve month periods ended December 31, 2009 and 2008.
Three Months Ended Year Ended ------------------ ---------- December December 31, December 31, December 31, 31, 2009 2008 2009 2008 --------- ------------- ------------- ------------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- ----------- Available Days (1) 4,068 4,910 15,588 22,817 Operating Days (2) 4,001 4,894 15,479 22,745 Fleet Utilization (3) 98.4% 99.7% 99.3% 99.7% Equivalent Vessels 44 53 43 62 Time Charter Equivalent (4) $24,120 $36,088 $25,821 $45,566 (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, today, Tuesday, February 23, 2010, at 8:30 am EST, members of senior management will host a conference call to provide highlights and commentary on the fourth quarter and year ended December 31, 2009.
A supplemental slide presentation will be available on the Navios Holdings website at http://www.navios.com under the "Investors" section at 6:00 am EST on the day of the call.
The conference call details are as follows:
Call Date/Time: Tuesday, February 23, 2010, at 8:30 am EST
Call Title: Navios Maritime Holdings Inc. Q4 and FY 2009 Financial Results Conference Call
US Dial In: +1.888.694.4702 |
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International Dial In: +1.973.582.2741 |
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Conference ID: 5768 1328 |
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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 |
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International Replay Dial In: +1.706.645.9291 |
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Conference ID: 5768 1328 |
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This call will be simultaneously Webcast at the following Web address: http://www.videonewswire.com/event.asp?id=66402 . 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 233 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 dry bulk 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.
EXHIBIT I NAVIOS MARITIME HOLDINGS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Expressed in thousands of U.S. dollars) December 31, December 31, 2009 2008 ---- ---- (unaudited) ASSETS Current assets Cash and cash equivalents $173,933 $133,624 Restricted cash 107,158 17,858 Accounts receivable, net 78,504 109,780 Short-term derivative asset 38,382 214,156 Short-term backlog asset - 44 Due from affiliate companies 1,973 1,677 Prepaid expenses and other current assets 27,730 28,270 Total current assets 427,680 505,409 Deposit for vessel acquisitions 344,515 404,096 Vessels, port terminal and other fixed assets, net 1,577,741 737,094 Long-term derivative assets 8,181 36,697 Other long-term assets 69,222 46,855 Investments in affiliates 13,042 5,605 Investments in available for sale securities 46,314 22,358 Intangible assets other than goodwill 300,571 347,878 Goodwill 147,916 147,632 Total non-current assets 2,507,502 1,748,215 Total assets $2,935,182 $2,253,624 LIABILITIES AND EQUITY Current liabilities Accounts payable $61,990 $72,520 Dividends payable 6,052 9,096 Accrued expenses 48,030 34,468 Deferred income 9,529 11,319 Short-term derivative liability 10,675 128,952 Current portion of long-term debt 59,804 15,177 Total current liabilities 196,080 271,532 Senior and ship mortgage notes, net of discount 693,049 298,344 Long-term debt, net of current portion 869,853 574,194 Unfavorable lease terms 59,203 76,684 Long-term liabilities and deferred income 33,470 47,827 Deferred tax liability 22,777 26,573 Long-term derivative liability - 23,691 Total non-current liabilities 1,678,352 1,047,313 Total liabilities 1,874,432 1,318,845 Commitments and contingencies - - Stockholders' equity Preferred stock -- $0.0001 par value, authorized 1,000,000 shares, 8,201 and none issued and outstanding as of December 31, 2009 and December 31, 2008, respectively - - Common stock -- $0.0001 par value, authorized 250,000,000 shares, Issued and outstanding, 100,874,199 and 100,488,784 as of December 31, 2009 and December 31, 2008, respectively 10 10 Additional paid-in capital 533,729 494,719 Accumulated other comprehensive income/(loss) 15,156 (22,578) Retained earnings 376,585 333,669 Total stockholders' equity 925,480 805,820 Noncontrolling interest 135,270 128,959 Total equity 1,060,750 934,779 Total liabilities and equity $2,935,182 $2,253,624
NAVIOS MARITIME HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of U.S. dollars — except share and per share data)
Three Month Three Month Period ended Period ended Year ended Year ended December 31, December 31, December 31, December 31, 2009 2008 2009 2008 (unaudited) (unaudited) (unaudited) Revenue $ 148,730 $ 214,175 $ 598,676 $ 1,246,062 Time charter, voyage and logistic business expenses (83,801) (168,682) (353,838) (1,066,239) Direct vessel expenses (8,375) (7,635) (31,454) (26,621) General and administrative expenses (12,936) (12,811) (43,897) (40,001) Depreciation and amortization (22,053) (14,979) (73,885) (57,062) Interest income/expense and finance cost, net (19,042) (12,435) (61,919) (41,375) Gain (loss) on derivatives (2,411) (5,543) 375 8,092 Gain on sale of assets/partial sale of subsidiary 3,995 129 20,785 27,817 Other income/expense, net (1,157) (2,402) (14,666) (3,967) Income (loss) before equity in net earnings of affiliate companies 2,950 (10,183) 40,177 46,706 Equity in net earnings of affiliated companies 9,265 5,146 29,222 17,431 Income (loss) before taxes $ 12,215 $ (5,037) $ 69,399 $ 64,137 Income taxes (462) (1,527) 1,565 56,113 Net income (loss) 11,753 (6,564) 70,964 120,250 Less: Net income (loss) attributable to the noncontrolling interest 733 1,001 (3,030) (1,723) Net income (loss) attributable to Navios Holdings common stockholders $ 12,486 $ (5,563) $ 67,934 $ 118,527 Basic net income (loss) per share attributable to Navios Holdings stockholders $ 0.12 $ (0.06) $ 0.68 $ 1.14 99,950,703 100,683,770 99,920,716 104,343,083 Diluted net income (loss) per share attributable to Navios Holdings stockholders $ 0.11 $ (0.06) $ 0.65 $ 1.10 Weighted average number of shares, diluted 109,576,524 100,849,427 105,194,627 107,344,748 NAVIOS MARITIME HOLDINGS INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of U.S. dollars) Year ended Year ended December December 31, 2009 31, 2008 --------- --------- (unaudited) OPERATING ACTIVITIES: Net income $70,964 $120,250 Adjustments to reconcile net income to net cash provided by operating activities: Non-cash adjustments 62,112 (6,637) Decrease in operating assets 30,399 87,797 Increase/(Decrease) in operating liabilities 56,498 (226,145) Payments for dry dock and special survey costs (3,522) (3,653) Net cash provided by (used in) operating activities 216,451 (28,388) INVESTING ACTIVITIES: Acquisition of subsidiary, net of cash acquired (369) (107,569) Deposits in escrow in connection with acquisition of subsidiary - (2,500) Acquisition of vessels (512,760) (118,814) Deposits for vessel acquisitions (238,810) (197,853) Receipts from finance lease 567 4,843 Proceeds from sale of assets 66,600 70,088 Restricted cash for investing activities (90,878) - Purchase of property and equipment (26,888) (100,832) Net cash used in investing activities (802,538) (452,637) FINANCING ACTIVITIES: Proceeds from long term loan, net of deferred finance fees 603,173 312,517 Proceeds from ship mortgage notes 394,412 - Repayment of long term debt and payment of principal (333,952) (52,563) Dividends paid (27,583) (28,588) Acquisition of treasury stock (717) (51,033) Increase in restricted cash (9,500) - Contributions from noncontrolling shareholders 563 - Issuance of common stock - 6,749 Net cash provided by financing activities 626,396 187,082 Increase/(decrease) in cash and cash equivalents 40,309 (293,943) Cash and cash equivalents, beginning of period 133,624 427,567 Cash and cash equivalents, end of period $173,933 $133,624 SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid for interest $58,224 $48,570 Cash paid for income taxes $2,238 $2,553
Disclosure of Non-GAAP Financial Measures
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, unless otherwise stated. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is a "non-GAAP financial measure" and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.
EBITDA is presented to provide additional information with respect to Navios Holdings' ability to satisfy its obligations including debt service, capital expenditures, working capital requirements and payment of dividends. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.
EBITDA Reconciliation to Cash from Operations Three Months Ended December 31, December 31, (in thousands of US Dollars) 2009 2008 Net cash provided by (used in) operating activities $71,459 $(2,765) Net (decrease) increase in operating assets (22,398) (21,881) Net (increase) decrease in operating liabilities (21,949) 43,805 Net interest cost 19,042 12,435 Deferred finance charges (3,467) (592) Unrealized gain (loss) on FFA derivatives, warrants and interest rate swaps 7,828 (6,246) Provision for losses on accounts receivable (862) (2,668) Earnings in affiliates and joint ventures, net of dividends received 663 534 Payments for drydock and special survey 240 598 Noncontrolling interest 733 1,001 Gain on sale of assets/partial sale of subsidiary 3,995 129 ----- --- EBITDA $55,284 $24,350 ======= =======
Year Ended December 31, December 31, (in thousands of US Dollars) 2009 2008 Net cash provided by/(used in) operating activities $216,451 $(28,388) Net (decrease) increase in operating assets (30,399) (87,797) Net (increase) decrease in operating liabilities (56,498) 226,145 Net interest cost 61,919 41,375 Deferred finance charges (6,682) (2,077) Provision for losses on accounts receivable (2,237) (2,668) Unrealized gain (loss) on FFA derivatives, warrants and interest rate swaps 9,311 (15,376) Earnings in affiliates and joint ventures, net of dividends received 1,355 4,517 Payments for drydock and special survey 3,522 3,653 Gain on sale of assets/partial sale of subsidiary 20,785 27,817 Unrealized losses on available for sale securities (13,778) - Non-cash compensation received 6,082 - Noncontrolling interest (3,030) (1,723) ------ ------ EBITDA $206,801 $165,478 ======== ========
EXHIBIT II Owned Vessels Year Vessel Name Vessel Type Built Deadweight ----------- ----------- ----- ---------- (in metric tons) Ultra Navios Ionian Handymax 2000 52,067 Ultra Navios Horizon Handymax 2001 50,346 Ultra Navios Herakles Handymax 2001 52,061 Ultra Navios Achilles Handymax 2001 52,063 Ultra Navios Meridian Handymax 2002 50,316 Ultra Navios Mercator Handymax 2002 53,553 Ultra Navios Vector(1) Handymax 2002 50,296 Ultra Navios Arc Handymax 2003 53,514 Ultra Navios Hios Handymax 2003 55,180 Ultra Navios Kypros Handymax 2003 55,222 Ultra Navios Ulysses Handymax 2007 55,728 Ultra Navios Vega Handymax 2009 58,792 Ultra Navios Celestial Handymax 2009 58,063 Navios Magellan Panamax 2000 74,333 Navios Star Panamax 2002 76,662 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 Navios Aurora II Capesize 2009 169,031 Navios Lumen Capesize 2009 180,661 Navios Stellar Capesize 2009 169,001 Navios Phoenix Capesize 2009 180,242 Navios Antares Capesize 2010 169,059 Product Vanessa Handysize 2002 19,078
Owned Vessels to be delivered Vessel Delivery Vessel Name Type Date Deadweight ----------- ---- ---- ---------- (in metric tons) Navios Melodia Capesize 7/2010 180,000 Navios Fulvia Capesize 8/2010 180,000 Navios Buena Ventura Capesize 9/2010 180,000 Navios Luz Capesize 10/2010 180,000 Navios Etoile Capesize 10/2010 180,000 Navios Bonheur Capesize 11/2010 180,000 Navios TBN Capesize 3/2011 180,000 Long term Chartered-in Fleet in Operation Year Purchase Vessel Name Vessel Type Built Deadweight Option(2) ----------- ----------- ----- ---------- --------- (in metric tons) Ultra Navios Astra Handymax 2006 53,468 Yes Ultra Navios Primavera Handymax 2007 53,464 Yes Ultra Navios Armonia 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 Phoenix Beauty Capesize 2010 169,150 No
Long term Chartered-in Fleet to be Delivered Delivery Purchase Vessel Name Vessel Type Date Deadweight Option(2) ----------- ----------- ----- ---------- --------- (in metric tons) Kleimar TBN Capesize 04/2010 176,800 No Navios TBN Handysize 02/2011 35,000 Yes(3) Navios TBN Handysize 04/2011 35,000 Yes(3) Navios TBN Panamax 09/2011 80,000 Yes Navios TBN Capesize 09/2011 180,200 Yes Ultra Navios TBN Handymax 03/2012 61,000 Yes Kleimar TBN Capesize 07/2012 180,000 Yes Navios TBN Panamax 01/2013 82,100 Yes Navios TBN Capesize 06/2013 180,000 Yes Ultra Navios TBN Handymax 08/2013 61,000 Yes
(1) Currently chartered-in vessel; expected to be delivered in Navios Holdings' owned fleet in Q2 2010.
(2) Generally, Navios Holdings may exercise its purchase option after three to five years of service.
(3) The initial 50% purchase option on each vessel is held by Navios Holdings.
SOURCE Navios Maritime Holdings Inc.
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