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

   International Dial In: +1.973.582.2741

   Conference ID: 5768 1328


The conference call replay will be available shortly after the live call and remain available for one business week at the following numbers:

   US Replay Dial In: +1.800.642.1687

   International Replay Dial In: +1.706.645.9291

   Conference ID: 5768 1328


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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