Navios Maritime Holdings Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2010

PIRAEUS, Greece, Nov. 16, 2010 /PRNewswire-FirstCall/ --

• Dividend of $0.06 per share for Q3 2010
• Q3 Net Income excluding Navios Acquisition of $18.7 million
• Q3 EBITDA excluding Navios Acquisition of $63.3 million

Navios Maritime Holdings Inc. ("Navios Holdings") (NYSE: NM), a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the third quarter and nine months ended September 30, 2010.

Angeliki Frangou, Chairman and CEO of Navios Holdings stated, "We continue to benefit from our strategy of fixing our fleet for long-term periods with quality counter parties. Navios Holdings, excluding Navios Acquisition, had over $63 million in EBITDA and $18.65 million of net income."

Ms. Frangou continued "We remain focused on maintaining a healthy balance sheet. We have concentrated on reducing our leverage through debt repayment and building strong liquidity. Our recent net debt to market capitalization was approximately 45%, and Navios Holdings remains one of the few dividend paying companies in the drybulk sector; we declared a $0.06 dividend per share for Q3 2010."

2010 HIGHLIGHTS — RECENT DEVELOPMENTS

Navios Holdings

Vessel Sales

On November 15, 2010, Navios Holdings sold the Navios Melodia, a 2010 South Korean-built Capesize vessel of 179,132 dwt, and the Navios Fulvia, a 2010 South Korean-built Capesize vessel of 179,263 dwt, to Navios Partners for a total of $177.0 million, payable in the form of $162.0 million in cash and 788,370 common units in Navios Maritime Partners L.P. ("Navios Partners").

Navios Fulvia, a 2010-built, 179,263 dwt Capesize vessel, was delivered on October 1, 2010 to Navios Holdings' owned fleet from a South Korean shipyard. The vessel is chartered-out for 5 years at a net charter out rate of $50,588 per day. This vessel was sold to Navios Partners on November 15, 2010 for total consideration of $98.2 million.

Navios Melodia, a 2010-built, 179,132 dwt Capesize vessel, was delivered on September 20, 2010 to Navios Holdings' owned fleet from a South Korean shipyard. The vessel is chartered-out for 12 years at a net charter out rate of $29,356 per day with 50/50 profit sharing. This vessel was sold to Navios Partners on November 15, 2010 for total consideration of $78.8 million.

Repurchase of Convertible Senior Promissory Note

On November 15, 2010, Navios Holdings purchased the 2% convertible senior promissory note that was previously issued at par value of $33.5 million for an aggregate price of $29.1 million representing a 13% discount.

Delivery of Navios Buena Ventura

On October 29, 2010, Navios Holdings took delivery of the Capesize vessel Navios Buena Ventura, a 2010-built of 179,132 dwt from a South Korean shipyard. The vessel is chartered-out for ten years at a net rate of $29,356 per day with 50/50 profit sharing.

Liquidity

On September 30, 2010, Net Debt to Total Capitalization, excluding Navios Acquisition, was 50.6% and 58.0% including Navios Maritime Acquisition Corporation ("Navios Acquisition"). Navios Holdings' total available liquidity, including bank lines, at September 30, 2010 was approximately $254.2 million ($331.9 million including Navios Acquisition).  Navios Holdings has no unfunded capital expenditures for 2010.

Time Charter Coverage

Navios Holdings has long-term fleet employment for periods ranging from one to 12 years. As of November 15, 2010, Navios Holdings had contracted 99.2%, 73.3%, 57.4% and 42.8% of its available days on a charter-out basis for 2010, 2011, 2012 and 2013, respectively, equivalent to $296.7 million, $274.6 million, $241.3 million and $195.4 million in revenue, respectively. The average contractual daily charter-out rate for the core fleet is $26,262, $29,508, $31,513 and $32,822 for 2010, 2011, 2012 and 2013, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2010 is $10,107.

The above figures do not include Navios South American Logistics Inc. ("Navios Logistics") fleet and vessels servicing the Contracts of Affreightment ("COA").

Navios Acquisition

Information relating to Navios Acquisition is included herein because of the consolidation of Navios Acquisition into Navios Holdings. Certain numbers exclude the effect of the consolidation of Navios Acquisition.

Public Offering

On November 16, 2010, Navios Acquisition priced an offering of 6,500,000 shares of common stock at $5.50 per share in a public offering. Navios Acquisition granted the underwriters a 30-day option to purchase an additional 975,000 shares of common stock to cover over-allotments, if any.  Navios Acquisition expects to use the net proceeds from the public offering for general corporate purposes.

Acquisition of two new build LR1 product tankers

In October 2010, Navios Acquisition entered into an agreement for the acquisition of two new build LR1 product tankers scheduled to be delivered in the second half of 2012 from a South Korean shipyard. The effective acquisition price, including the issuance of mandatorily convertible preferred shares, was $82.8 million and will be partially financed with a new credit facility of $52.2 million. The new credit facility has an amortization profile of 18.9 years and bears an interest of LIBOR plus (i) 250 bps prior to delivery of the vessels and (ii) 275 bps thereafter.

Delivery of the chemical tanker vessel Nave Cosmos

On October 27, 2010, Navios Acquisition took delivery of the chemical tanker Nave Cosmos of 25,130 mt from a South Korean shipyard. The vessel is chartered out for three months with an option for three additional months at a net daily charter rate of $10,238 for the first three months and $12,188 for the optional months.

$400.0 million 8 5/8% First Priority Ship Mortgage Notes Due 2017

On October 21, 2010, Navios Acquisition completed the sale of $400.0 million of 8 5/8% First Priority Ship Mortgage notes due 2017 (the "Notes"). The Notes are secured by first priority ship mortgages on six very large crude carrier vessels aggregating approximately 1.8 million dwt owned by certain subsidiary guarantors. The Notes are guaranteed by each of Navios Acquisition's direct and indirect subsidiaries.

The net proceeds of the offering totalling $386.5 million were used to repay borrowings under certain of Navios Acquisition's existing credit facilities from the VLCC acquisition, to partially repay $27.6 million of the $40.0 million Navios Holdings' credit facility and for working capital purposes.

Acquisition of VLCC tanker vessels

On September 10, 2010, Navios Acquisition acquired a fleet of seven VLCC tankers (the "VLCC Acquisition") for $587.0 million, adjusted for net working capital acquired of $20.1 million.  The acquisition was financed with: (a) $410.5 million of bank debt, assumed at closing consisting of six credit facilities with a consortium of banks; (b) $134.3 million of cash paid at closing; (c) $10.7 million through the issuance of 1,894,418 shares of common stock at closing of which 1,378,122 were deposited into a one-year escrow account to provide for indemnity or other claims; and (d) $51.4 million due to a shipyard in 2011 for the new build VLCC scheduled for delivery in June 2011(of which $36.8 million is expected to be drawn down from existing debt facilities entered into in connection with the VLCC Acquisition).

The cash portion of the purchase price was financed by: (i) $32.2 million of cash from the balance sheet of the acquired entities; (ii) $40.0 million in short-term financing from Navios Holdings with a margin of LIBOR plus 300 bps and a term of 18 months, maturing on April 1, 2012; and (iii) existing cash resources of Navios Acquisition. Out of the total amount of the $40.0 million loan, Navios Acquisition partially repaid $27.6 million to Navios Holdings in October 2010.

Fleet Profile

Navios Holdings controls a fleet of 57 vessels totaling 6.0 million dwt, of which 29 are owned and 28 are chartered-in under long-term charters. Navios Holdings currently operates 39 vessels (13 Capesize, 10 Panamax and 16 Ultra-Handymax) totaling 3.9 million dwt and has scheduled 18 newbuildings to be delivered. These vessels are expected to be delivered at various dates through 2013. The average age of the operating fleet is 4.9 years.

Exhibit II displays the "Core Fleet" profile of Navios Holdings and refers to drybulk vessel operations (excludes fleet of Navios Acquisition and Navios Logistics).

Financial Highlights

• Net income, excluding Navios Acquisition, decreased by 12.5%% to $18.7 million in the third quarter of 2010 from $21.3 million in the same period in 2009.

• EBITDA, excluding Navios Acquisition, increased by 13.6% to $63.3 million in the third quarter of 2010 from $55.7 million in the same period in 2009.

Dividend Policy

The Board of Directors declared a quarterly cash dividend for the third quarter of 2010 of $0.06 per share of common stock. This dividend is payable on January 5, 2011 to stockholders of record as of December 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 nine month periods ended September 30, 2010 and 2009. The information was derived from the unaudited consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-U.S. GAAP financial measures, and should not be used in isolation or substitution for Navios Holdings' results.

Third Quarter 2010 Results (in thousands of U.S. dollars, unless otherwise stated, except per share data):

Total Navios Holdings revenue including drybulk vessel operations, logistics business and tanker vessels operations for the three months ended September 30, 2010 increased by $9.6 million, to $170.2 million compared to $160.6 million for the same period in 2009.

Revenue from drybulk vessel operations for the three months ended September 30, 2010 was $106.8 million as compared to $121.2 million for the same period during 2009. The decrease in revenue was mainly attributable to (a) the decrease in short-term and long-term chartered in fleet available days of 229 days and (b) the decrease in the freight market resulting in lower charter out daily rates for the short and long term chartered in fleet. This decrease was partially offset by (a) a slight increase in Time Charter Equivalent ("TCE") per day of 2.2% to $24,598 per day in the third quarter of 2010 from $24,061 per day in the same period of 2009 and (b) an increase in the available days of the fleet of 2.1% to 4,032 days in the third quarter of 2010 from 3,949 days in the same period of 2009. The variance of 83 days was due to an increase by 312 of the available ownership days following the delivery of 11 newbuilding owned vessels at various times since the third quarter of 2009, offset by a decrease in short-term and long-term chartered in fleet available days of 229 days in total.

Revenue from the logistics business was approximately $55.3 million for the three months ended September 30, 2010 as compared to $39.3 million during the same period of 2009. This increase was mainly attributable to (a) the acquisition of Sara H in February 2010, (b) the increased operations of its liquid port, (c) the increased volumes in the dry port terminal business and (d) the increased storage capacity of its dry port in Uruguay following the construction of its new silo.

Revenue from tanker vessel operations for the three month period ended September 30, 2010 was $8.1 million. Following the delivery of the product tanker Ariadne Jacob on July 2, 2010 and the VLCC Acquisition on September 10, 2010, Navios Acquisition had 308 available days at a TCE rate of $26,129. There were no operations in the corresponding period in 2009.

EBITDA of Navios Holdings (excluding Navios Acquisition) for the three months ended September 30, 2010 increased by $7.6 million to $63.3 million compared to $55.7 million for the third quarter of 2009. The $7.6 million increase in EBITDA was primarily due to (i) an increase in revenue of $1.5 million to $162.1 million in the third quarter of 2010 from $160.6 million in the same period of 2009, (ii) a decrease in time charter, voyage and logistic business expenses of $11.5 million from $95.4 million in the third quarter of 2009 to $83.9 million in the same period of 2010,  (iii) a decrease of $0.1 million in noncontrolling interest and (iv) an increase in equity in net earnings from affiliated companies by $0.2 million. The overall variance of $13.3 million was offset by (i) an increase in direct vessel expenses (excluding the amortization of deferred dry dock and special survey costs) of $0.6 million, (ii) an increase in general and administrative expenses of $1.6 million (excluding share-based compensation expenses), (iii) a decrease of $2.2 million in gains from derivatives and (iv) an increase of $1.3 million in net other expense.

EBITDA of Navios Logistics was $8.4 million for the three months ended September 30, 2010 as compared to $11.4 million during the same period in 2009.

Adjusted EBITDA of Navios Acquisition for the three month period ended September 30, 2010 was $7.6 million which excludes $8.0 million of transaction costs for the VLCC Acquisition.

Net income of Navios Holdings (excluding Navios Acquisition) for the three months ended September 30, 2010 was $18.7 million as compared to $21.3 million for the comparable period of 2009.  The decrease of net income by $2.6 million was mainly due to (i) an increase in depreciation and amortization of $1.6 million, (ii) an increase in interest expense of $7.5 million, (iii) a decrease in income taxes of $0.7 million and (iv) an increase of $0.4 million in amortization for drydock and special survey costs. This decrease was offset by a $7.6 million increase in EBITDA discussed above.

Adjusted Net Income of Navios Acquisition for the three month period ended September 30, 2010 was $4.0 million, excluding items such as the transaction costs of $8.0 million incurred in connection with the VLCC Acquisition.

Nine months ended September 30, 2010 Results (in thousands of U.S. dollars, unless otherwise stated, except per share data)

Total Navios Holdings revenue including drybulk vessel operations, logistics business and tanker vessels operations for the nine months ended September 30, 2010 increased by $40.0 million, to $490.0 million compared to $450.0 million for the same period in 2009.

Revenue from drybulk vessel operations for the nine months ended September 30, 2010 was $338.7 million as compared to $346.2 million for the same period during 2009. The decrease in revenue was mainly attributable to a decrease in TCE per day of 4.0% to $25,298 in the first nine months of 2010 from $26,353 per day in the same period of 2009. This decrease was offset by (a) an increase in available days of the fleet of 5.1% to 12,140 days in the first nine months of 2010 from 11,550 days in the same period of 2009. The variance of 590 available days was due to an increase by 1,557 of the available ownership days following the delivery of 11 newbuilding owned vessels at various times since the third quarter of 2009, offset by a decrease in short-term and long-term chartered in fleet available days of 234 days and 733 days, respectively.

Revenue from the logistics business was approximately $143.1 million for the nine months ended September 30, 2010 as compared to $103.8 million during the same period of 2009. This increase was mainly attributable to (a) the acquisition of Makenita H in June 2009, which was fully operational during the nine month period of 2010, (b) the acquisition of Sara H in February 2010, (c) the increased operations of its liquid port and (d) the increased storage capacity of its dry port in Uruguay following the construction of its new silo.

Revenue from tanker vessel operations for the nine month period ended September 30, 2010 was $8.1 million. Following the VLCC Acquisition and the acquisitions of the Collin Jacob in June 2010 and the Ariadne Jacob in July 2010, Navios Acquisition had 309 available days at a TCE of $26,084 for the nine month period ended September 30, 2010. There was no revenue in the corresponding period of 2009.

Adjusted EBITDA of Navios Holdings (excluding Navios Acquisition) for the nine months ended September 30, 2010 increased by $50.1 million to $192.5 million compared to $142.4 million for same period of 2009. The $50.1 million increase in adjusted EBITDA was primarily due to (i) an increase in revenue of $32.0 million to $481.9 million for the first nine month period ended September 30, 2010 to $449.9 million in the same period of 2009, (ii) a decrease in time charter, voyage and logistic business expenses of $15.2 million from $270.0 million in the first nine months of 2009 to $254.8 million in the same period of 2010, (iii) a decrease of $1.4 million in noncontrolling interest, (iv) an increase in equity in net earnings from affiliated companies by $9.5 million and (v) an increase of $1.2 million in gains from derivatives. The overall variance of $59.3 million was offset by (i) an increase in direct vessel expenses (excluding the amortization of deferred dry dock and special survey costs) of $4.5 million, (ii) an increase in general and administrative expenses of $3.9 million (excluding share-based compensation expenses) and (iii) an increase of $0.8 million in net other expense.

EBITDA of Navios Logistics was $22.8 million for the nine months ended September 30, 2010 as compared to $25.8 million during the same period in 2009.

Adjusted EBITDA of Navios Acquisition for the nine month period ended September 30, 2010 was $7.6 million which excludes $8.0 million of transaction costs for the VLCC Acquisition.

Adjusted Net income of Navios Holdings (excluding Navios Acquisition) for the nine months ended September 30, 2010 was $56.7 million as compared to $46.4 million for the comparable period of 2009.  The increase of net income by $10.3 million was mainly due to (i) an increase in depreciation and amortization of $17.0 million, (ii) an increase in interest expense, net of $20.7 million, (iii) a decrease in income taxes of $1.4 million, (iv) an increase of $0.5 million in amortization for drydock and special survey costs and (v) an increase of $0.2 million in share−based compensation expense. This decrease was offset by a $50.1 million increase in adjusted EBITDA discussed above.

Adjusted Net Income of Navios Acquisition for the nine month period ended September 30, 2010 was $3.9 million and represented net income for the nine month period ended September 30, 2010, excluding the transaction costs of $8.0 million incurred in connection with the VLCC Acquisition.

Fleet Summary Data:

The following table reflects certain key indicators indicative of the performance of the Navios Holdings drybulk operations and its fleet performance for the three and nine month periods ended September 30, 2010 and 2009.  

Conference Call:

This call will be simultaneously Webcast. The Webcast will be available on the Navios Holdings website, http://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.

A supplemental slide presentation will be available on the Navios Holdings website at http://www.navios.com under the "Investors" section at 7:45 am ET on the day of 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 2008 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 234 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 Partners (NYSE: NMM) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit our website at www.navios-mlp.com.

About Navios Acquisition

Navios Acquisition (NYSE: NNA) is an owner and operator of tanker vessels focusing in the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. For more information about Navios Acquisition, please visit our website: http://www.navios-acquisition.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.

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

Navios Logistics EBITDA Reconciliation to Net Income

EBITDA Reconciliation to Cash from Operations

Navios Logistics EBITDA Reconciliation to Net Income

EXHIBIT II

Owned Vessels

Owned

Vessels to be delivered

Long term Chartered-in Fleet in Operation

Long-term Chartered-in to be Delivered

SOURCE Navios Maritime Holdings Inc.