Navios Maritime Holdings Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2013
(firmenpresse) - MONACO -- (Marketwired) -- 11/25/13 -- Navios Maritime Holdings Inc. (NYSE: NM)
Navios Maritime Holdings Inc. ("Navios Holdings" or "the Company") (NYSE: NM), a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the third quarter and nine months ended September 30, 2013.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, "We are pleased to report our results for the third quarter of 2013. We had a solid quarter and reported $40.6 million of EBITDA. We continued our operating discipline. Through a number of initiatives, we materially reduced our daily operating expense to $3,631 and daily cash breakeven to $8,590 per vessel for 2014. As we focus on execution, we are returning capital to our shareholders through dividend payments and declared a $0.06 dividend for Q3 2013 representing a yield of 3.1%."
Angeliki Frangou continued, "When the rate and charter period markets were robust, we entered into long-term charters-out, generating stable cash flow that allowed us the latitude to position ourselves for a difficult market. This also developed continued access to the capital markets. Today, the Navios Group's access to the capital markets is a competitive advantage. So far in 2013, we have raised over $2.3 billion and agreed to acquire 44 vessels at attractive prices."
On November 14, 2013, Navios Holdings and Navios Maritime Finance II (US) Inc. (the "Co-Issuers") priced an offering of $650.0 million of 7 3/8% First Priority Ship Mortgage Notes due 2022 (the "2022 Notes"). The 2022 Notes will be secured by first priority ship mortgages on 23 vessels, aggregating approximately 2.2 million deadweight tons owned by certain subsidiary guarantors and certain other associated property and contract rights. The 2022 Notes will be guaranteed by all of the Company's subsidiaries that guarantee the Co-Issuer's 8 1/8% Senior Notes due 2019. The 2022 Notes offering is expected to close on November 29, 2013.
On November 14, 2013, Navios Holdings and Navios Maritime Finance (US) Inc. commenced a cash tender offer (the "Tender Offer") for any and all of their outstanding 8 7/8% First Priority Ship Mortgage Notes due 2017 (the "2017 Notes") and a consent solicitation to eliminate or modify most of the restrictive covenants and certain events of default. The Tender Offer and consent solicitation are scheduled to expire on December 12, 2013. We currently intend to discharge and redeem any 2017 Notes that are not purchased in the Tender Offer.
During the third quarter of 2013, four Panamax vessels were delivered to Navios Holdings' owned fleet, comprised of the Navios Galileo, the Navios Amitie, the Navios Taurus and the Navios Northern Star. The total vessel acquisition price was $67.8 million, of which $40.0 million was financed through a facility agreement with DVB Bank S.E. and the balance with available cash.
On November 15, 2013, the Board of Directors declared a quarterly cash dividend for the third quarter of 2013 of $0.06 per share of common stock. The dividend is payable on December 20, 2013 to stockholders of record as of December 12, 2013. The declaration and payment of any further dividends remain subject to the discretion of the Board and will depend on, among other things, Navios Holdings' cash requirements after taking into account market opportunities, restrictions under its credit agreements and other debt obligations and such other factors as the Board may deem advisable.
In November 2013, Navios Logistics announced that it has signed a 20-year agreement with Vale International S.A. ("Vale"), a subsidiary of Vale S.A., to provide storage and transshipment services. The agreement with Vale provides for storing and transshipping five million tons annually of iron ore, plus an option to Vale for an additional one million tons or a total of six million tons, with a guarantee that Vale will use a minimum of four million tons. The agreement provides for fixed tariffs per ton, paid in US dollars, with annual adjustments for inflation and currency fluctuations.
Navios Logistics would expect to generate approximately $35.0 million of annual EBITDA, and $1.0 billion of aggregate EBITDA over the 20-year term, assuming operating costs similar to the operating costs of Navios Logistics' existing dry port terminal.
If Navios Logistics uses the facility for initial maximum capacity, Navios Logistics would expect to generate approximately $50.0 million of annual EBITDA and $1.5 billion of aggregate EBITDA over the 20-year term, assuming operating costs similar to the operating costs of Navios Logistics' existing dry port terminal.
Navios Logistics will provide storage and transshipment services by expanding its existing terminal infrastructure and investing approximately $150.0 million. Upon completion of the expansion of the storage and transshipment facility, the facility will have six million tons of throughput capacity with potential to increase to ten million tons. The facility could generate additional EBITDA if the facility were expanded to its ten million ton maximum design capacity. Navios Logistics may cancel the agreement without any liability for a number of reasons during the initial two-year period.
Navios Logistics entered into six year time charter contracts for four convoys at $14,500 per day per convoy, with an investment grade counterparty. These contracts will be serviced using newbuilt barges currently under construction. Navios Logistics estimates that it will generate approximately $13.2 million annual EBITDA from these contracts.
On November 13, 2013, Navios Holdings received $7.4 million from Navios Maritime Partners L.P. ("Navios Partners") representing the cash distribution for the third quarter of 2013.
On October 4, 2013, Navios Holdings received $3.7 million from Navios Maritime Acquisition Corporation ("Navios Acquisition") representing the cash dividend for the second quarter of 2013.
In October 2013, the N Amalthia, a 2006-built 75,318 dwt vessel, was delivered to the Navios Asia owned fleet for an acquisition price of approximately $17.8 million.
As of November 14, 2013, Navios Holdings has chartered-out 98.0% and 29.2% of available days for 2013 and 2014, respectively, equivalent to $168.1 million and $73.8 million in revenue, respectively. The average daily charter-out rate for the core fleet is $11,343 and $15,376 for 2013 and 2014, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2013 is $13,357.
The above figures do not include the fleet of Navios Logistics and vessels servicing Contracts of Affreightment.
Navios Holdings controls a fleet of 60 vessels totaling 5.8 million dwt, of which 40 are owned and 20 are chartered-in under long-term charters (collectively, the "Core Fleet"). Navios Holdings currently operates 53 vessels (16 Capesize, 16 Panamax, 19 Ultra Handymax and two Handysize) totaling 5.2 million dwt. The current average age of the operating fleet is 6.6 years. Additionally, Navios Holdings has (i) two newbuilding charter-in vessels expected to be delivered at various dates through April 2016; and (ii) in the Navios Asia fleet, one vessel expected to be delivered in the first quarter of 2014 and four vessels expected to be delivered in the first quarter of 2015.
Exhibit II provides certain details of the "Core Fleet" of Navios Holdings. It does not include the fleet of Navios Logistics.
As of September 30, 2013
Net Debt to Total Capitalization of 47.6%.
Cash $219.8 million.
The third quarter 2013 and 2012 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA is a non-U.S. GAAP financial measure and should not be used in isolation or as substitution for Navios Holdings' results.
See Exhibit I under the heading, "Disclosure of Non-GAAP Financial Measures," for a discussion of EBITDA of Navios Holdings, on a consolidated basis, and Navios Logistics, and a reconciliation of such measure to the most comparable measure under U.S. GAAP.
Revenue from drybulk vessel operations for the three months ended September 30, 2013 was $72.5 million as compared to $98.9 million for the same period during 2012. The decrease in drybulk revenue was mainly attributable to a decrease in the time charter equivalent rate ("TCE") per day by 35.7% to $12,085 per day in the third quarter of 2013 following the receipt in advance of $175.4 million due to restructuring of credit default insurance, as compared to $18,785 per day in the same period of 2012; and (ii) a decrease in the long-term charter-in fleet available days of 211 days. This decrease was partially offset by an increase in short-term charter-in fleet available days of 563 days and an increase in available days for owned vessels of 92 days.
Revenue from the logistics business was $49.8 million for the three months ended September 30, 2013 as compared to $65.0 million for the same period of 2012. This decrease was mainly attributable to a decrease in the Paraguayan liquid port's volume of products sold.
EBITDA of Navios Holdings for the three months ended September 30, 2013 decreased by $20.2 million to $40.6 million as compared to $60.8 million for the same period of 2012. The $20.2 million decrease in EBITDA was primarily due to a $41.7 million decrease in revenue, which was mitigated by: (i) a decrease in general and administrative expenses of $1.4 million (excluding share-based compensation expenses); (ii) a $13.1 million decrease in time charter, voyage and logistics business expenses; (iii) a $2.0 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iv) a $1.0 million decrease in other expense, net; (v) a $0.1 million decrease in losses on derivatives; (vi) a $0.7 million decrease in net income attributable to the noncontrolling interest; and (vii) a $3.2 million increase in equity in net earnings from affiliated companies.
EBITDA of Navios Logistics was $10.8 million for the three month period ended September 30, 2013 as compared to $13.2 million for the same period in 2012.
Net loss of Navios Holdings for the three months ended September 30, 2013 was $13.1 million as compared to $4.6 million of income for the same period of 2012. The $17.7 million decrease of Net (Loss)/Income was mainly due to: (i) a decrease in EBITDA of $20.2 million; (ii) an increase in interest income/(expense) and finance cost, net of $0.5 million; and (iii) an increase of $0.8 million in amortization for deferred drydock and special survey costs. The decrease was partially offset by: (i) a decrease in depreciation and amortization of $2.2 million; (ii) an increase in income tax benefit of $1.1 million; and (iii) a decrease of $0.5 million in share-based compensation expense.
The information for the nine month periods ended September 30, 2013 and 2012 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA is a non-U.S. GAAP financial measure, and should not be used in isolation or as substitution for Navios Holdings' results.
See Exhibit I under the heading, "Disclosure of Non-GAAP Financial Measures," for a discussion of EBITDA and Adjusted EBITDA of Navios Holdings, on a consolidated basis, and Navios Logistics, and a reconciliation of such measures to the most comparable measures under U.S. GAAP.
The following table reflects certain key indicators indicative of the performance of the Navios Holdings' drybulk operations (excluding the Navios Logistics fleet) and its fleet performance for the three and nine month periods ended September 30, 2013 and 2012 and for the first and second quarter of 2013.
As previously announced, Navios Holdings will host a conference call today, November 25, 2013, at 8:30 am ET, at which time members of senior management will provide highlights and commentary on the financial results of the Company for the third quarter and nine months ended September 30, 2013.
A supplemental slide presentation will be available on the Navios Holdings website at under the "Investors" section by 8:00 am ET on the day of the call.
Conference Call details:
Call Date/Time: Monday, November 25, 2013, at 8:30 am ET
Call Title: Navios Holdings Inc. Q3 2013 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 6832 6328
The conference call replay will be available shortly after the live call and remain available for one week at the following numbers:
US Replay Dial In: +1.800.585.8367
International Replay Dial In: +1.404.537.3406
Conference ID: 6832 6328
This call will be simultaneously Webcast. The Webcast will be available on the Navios Holdings website, , under the "Investors" section. The Webcast will be archived and available at the same Web address for two weeks following the call.
Navios Maritime Holdings Inc. (NYSE: NM) is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain. For more information about Navios Holdings please visit our website: .
Navios South American Logistics Inc. is one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia region river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics serves the storage and marine transportation needs of its petroleum, agricultural and mining customers through its port terminals, river barge and coastal cabotage operations. For more information about Navios Logistics please visit its website: .
Navios Partners (NYSE: NMM) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit its website: .
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 its website: .
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 drybulk 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.
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, unless otherwise stated. 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 generally accepted accounting principles in the United States or as a measure of profitability or liquidity.
EBITDA is presented to provide additional information with respect to the ability of Navios Holdings to satisfy its respective obligations including debt service, capital expenditures and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA is used here may not be comparable to that used by other companies due to differences in methods of calculation.
Navios Logistics EBITDA is used to measure company's operating performance.
The following tables provide a reconciliation of EBITDA of Navios Holdings and Navios Logistics, which in the case of Navios Holdings is on a consolidated basis:
Contact:
Navios Maritime Holdings Inc.
+1.212.906.8643
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Datum: 25.11.2013 - 12:43 Uhr
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