News Column

Navios Maritime Holdings Inc. Reports Financial Results for the Fourth Quarter and Year Ended December 31, 2013

February 21, 2014



ENP Newswire - 21 February 2014

Release date- 20022014 - MONACO - Navios Maritime Holdings Inc. (NYSE: NM) a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the fourth quarter and year ended December 31, 2013.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, 'We are pleased to report our results for the fourth quarter and year 2013. We had solid results and reported Adjusted EBITDA of $159.8 million and $42.0 million for the year and the quarter, respectively. As we continue to focus on execution, we are returning capital to our shareholders through dividend payments and declared a $0.06 dividend for Q4 2013 representing a yield of 2.4%.'

Angeliki Frangou continued, 'Controlling costs was an institutional imperative in 2013, to take advantage of any change in the cycle. Through a number of initiatives, we materially reduced our daily cash breakeven to an estimated $7,308 per vessel for 2014. This low breakeven allows us to position Navios optimally as it provides a margin of safety in a recovering market and should provide reasonable cash flow in any event.'

HIGHLIGHTS-RECENT DEVELOPMENTS

Navios Holdings

Issuances of American Depositary Shares Representing Preferred Stock

On January 28, 2014, Navios Holdings completed the sale 2,000,000 American Depositary Shares, each of which represents 1/100th of a share of the Company's Series G Cumulative Redeemable Perpetual Preferred Stock, with a liquidation preference of $2,500.00 per share, priced at $25.00per American Depositary Share. Dividends will be payable on the Series G Cumulative Redeemable Perpetual Preferred Stock at a rate of 8.75% per annum of the stated liquidation preference.

The American Depositary Shares have been approved for listing on the New York Stock Exchange under the symbol 'NMPrG.' The net proceeds of approximately $47.7 million from the offering (after deducting underwriting discounts and estimated offering expenses) will be used for general corporate purposes, including acquisition of vessels.

Fleet Developments

Acquisition of Two New Building Vessels

On January 26, 2014, Navios Holdings entered into agreements to purchase two bulk carrier vessels, one 84,000 dwt Panamax vessel and one 180,600 dwt Capesize vessel, both to be built in Japan. The vessels' acquisition prices are $31.8 million and $52.0 million, respectively. Both vessels are scheduled for delivery in Q4 2015. The vessels will be financed with debt and cash from operations.

Chartered-in Five Vessels

In January 2014, Navios Holdings entered into agreements to charter-in five new building Japanese Kamsarmax vessels. The vessels are expected to be delivered between Q2 2015 and Q4 2016 and are chartered-in for periods from seven to ten years for an average charter rate of $13,480 per day for the first year. Navios has purchase option on all of the vessels.

Dividend Policy

On February 17, 2014, the Board of Directors declared a quarterly cash dividend for the fourth quarter of 2013 of $0.06 per share of common stock. The dividend is payable on March 27, 2014 to stockholders of record as of March 20, 2014. 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.

Navios South American Logistics Inc. ('Navios Logistics')

On February 11, 2014, Navios Logistics entered into an agreement for the construction of three new pushboats with a construction price of $7.4 million each. These vessels are expected to be delivered in the first quarter of 2015.

Navios Asia LLC ('Navios Asia')

In January, 2014, Navios Asia took delivery of the N Bonanza, a 2006-built 76,596 dwt bulk carrier vessel for a purchase price of $17.5 million, of which $6.3 million was paid from equity contributions and $11.3 million was financed through a loan.

Navios Maritime Partners L.P. ('Navios Partners')

In February 2014, Navios Partners completed its public offering of 6,325,000 common units, including the full exercise of the underwriters' overallotment option at $17.30 per unit, and raised gross proceeds of approximately $109.4 million. The net proceeds of this offering were approximately $104.5 million. Navios Holdings paid $2.2 million in order to retain its 2% general partner interest. As a result, 129,082 additional general partnership units were issued in connection with this offering. Following this offering Navios Holdings' owns 20.0% of Navios Partners (which includes a 2% general partner interest).

On February 14, 2014, Navios Holdings received $7.4 million from Navios Partners representing the cash distribution for the fourth quarter of 2013.

Navios Maritime Acquisition Corporation ('Navios Acquisition')

On February 14, 2014, Navios Acquisition priced its public offering of 14,950,000 shares of its common stock, including the full exercise of the underwriters' overallotment option at a price of $3.85 per share, raising gross proceeds of $57.6 million. The offering is expected to close on February 20, 2014. Following this offering, Navios Holdings' has a 43.6% voting interest and 46.4% economic interest in Navios Acquisition (43.1% voting and 45.8% economic interest following the exercise of the underwriters' overallotment option).

On January 7, 2014, Navios Holdings received $3.6 million from Navios Acquisition representing the cash dividend for the third quarter of 2013.

Time Charter Coverage

As of February 18, 2014, Navios Holdings has chartered-out 51.4% and 8.8% of available days for 2014 and 2015, respectively, equivalent to$115.4 million and $28.9 million in revenue, respectively. The average daily charter-out rate for the core fleet is $13,408 and $18,230 for 2014 and 2015, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2013 is $13,759.

The above figures do not include the fleet of Navios Logistics and vessels servicing Contracts of Affreightment.

Fleet Profile

Navios Holdings controls a fleet of 66 vessels totaling 6.3 million dwt, of which 42 are owned and 24 are chartered-in under long-term charters (collectively, the 'Core Fleet'). Navios Holdings currently operates 53 vessels (15 Capesize, 17 Panamax, 19 Ultra Handymax and two Handysize) totaling 5.1 million dwt.

The current average age of the operating fleet is 7.0 years. Additionally, Navios Holdings has (i) seven newbuilding charter-in vessels expected to be delivered at various dates through 2016; (ii) two newbuilding owned vessels expected to be delivered in Q4 2015 and (iii) four vessels in the Navios Asia fleet 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.

Earnings Highlights

As of December 31, 2013

Net Debt to Total Capitalization of 51.3%.

Cash of $189.9 million.

Fourth Quarter 2013 and 2012 Results:

The fourth quarter 2013 and 2012 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Losses per Share are non-U.S. GAAP financial measures 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 or Adjusted 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 December 31, 2013 was $80.0 million as compared to $69.9 million for the same period during 2012. The increase in drybulk revenue was mainly attributable to an increase in the time charter equivalent rate ('TCE') per day by 3.8% to $13,291 per day in the fourth quarter of 2013, as compared to $12,805 per day in the same period of 2012; (ii) an increase in available days for owned vessels of 453 days and (iii) an increase in short-term charter-in fleet available days of 473 days. This increase was partially offset by a decrease in long-term charter-in fleet available days of 11 days.

Revenue from the logistics business was $50.6 million for the three months ended December 31, 2013 as compared to $58.6 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 mitigated by an increase in the revenues of the dry port and the barge business.

Adjusted EBITDA of Navios Holdings for the three months ended December 31, 2013 decreased by $11.8 million to $42.0 million as compared to$53.8 million for the same period of 2012. The $11.8 million decrease in Adjusted EBITDA was primarily due to (i) a $1.4 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (ii) a $5.9 million decrease in other income, net; (iii) a$0.5 million increase in net income attributable to the noncontrolling interest and (iv) a $18.9 million decrease in equity in net earnings from affiliated companies.

This overall decrease of $26.7 million was mitigated by a (i) a $2.1 million increase in revenue;(ii) a $12.4 million decrease in time charter, voyage and logistics business expenses and (iii) a $0.4 million decrease in general and administrative expenses (excluding share-based compensation expenses).

EBITDA of Navios Logistics was $14.3 million for the three month period ended December 31, 2013 as compared to $10.9 million for the same period in 2012.

Adjusted Net Loss of Navios Holdings for the three months ended December 31, 2013 was $18.1 million as compared to $1.1 million for the same period of 2012. The $17.0 million increase of Adjusted Net Loss was mainly due to: (i) a decrease in Adjusted EBITDA of $11.8 million; (ii) an increase in interest income/(expense) and finance cost, net of $2.4 million; (iii) an increase in income tax expense of $0.7 million; (iv) an increase of $0.9 million in amortization for deferred drydock and special survey costs and (v) an increase of $1.9 million in share-based compensation expense.

This overall increase was partially offset by a decrease in depreciation and amortization of $0.7 million (excluding the accelerated amortization of intangibles in 2012).

Year Ended December 31, 2013 and 2012 Results:

The information for the year ended December 31, 2013 and 2012 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Net (Loss)/Income and Adjusted Basic Losses/(Earnings) Per Share are non-U.S. GAAP financial measures, and should not be used in isolation or as substitution for Navios Holdings' results.

Revenue from drybulk vessel operations for the year ended December 31, 2013 was $275.2 million as compared to $369.5 million for the same period during 2012. The decrease in drybulk revenue was mainly attributable to: (i) a decrease in the TCE per day by 33.8% to $12,029 per day in the year ended December 31, 2013 following the receipt in advance of $175.4 million due to restructuring of credit default insurance in the fourth quarter of 2012, as compared to $18,167 per day in the same period of 2012 and (ii) a decrease in the long-term charter-in fleet available days of 309 days.

This decrease was partially offset by an increase in short-term charter-in fleet available days of 1,415 days and an increase in available days for owned vessels of 669 days.

Revenue from the logistics business was $237.1 million for the year ended December 31, 2013 as compared to $247.0 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. This decrease was partially offset by an increase in (i) rates in the dry port terminal and (ii) rates in the cabotage fleet.

Adjusted EBITDA of Navios Holdings for the year ended December 31, 2013 decreased by $78.1 million to $159.8 million as compared to $237.9 million for the same period of 2012. The $78.1 million decrease in Adjusted EBITDA was primarily due to: (i) a $104.2 million decrease in revenue; (ii) a $14.1 million decrease in equity in net earnings from affiliated companies and (iii) a $3.7 million increase in net income attributable to the noncontrolling interest.

The overall variance of $122.0 million was mitigated by: (i) a $7.0 million decrease in general and administrative expenses (excluding share-based compensation expenses); (ii) a $6.0 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $24.9 million decrease in time charter, voyage and logistics business expenses and (iv) a $6.0 million increase in other income, net.

EBITDA of Navios Logistics was $56.8 million for the year ended December 31, 2013 as compared to $48.1 million for the same period in 2012.

Adjusted Net loss of Navios Holdings for the year ended December 31, 2013 was $57.1 million as compared to $18.0 million of income for the same period of 2012. The decrease of Adjusted Net Income by $75.1 million was mainly due to: (i) a decrease in Adjusted EBITDA of $78.1 million; (ii) an increase in interest income/(expense) and finance cost, net of $5.0 million; (iii) an increase of $2.3 million in amortization for deferred drydock and special survey costs and (iv) an increase of $0.3 million in share-based compensation expense.

The decrease was partially offset by: (i) a decrease in depreciation and amortization of $6.0 million (excluding the accelerated amortization of intangibles in 2012) and (ii) an increase in income tax benefit of $4.6 million.

Conference Call

As previously announced, Navios Holdings will host a conference call today, February 19, 2014, 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 fourth quarter and year ended December 31, 2013.

A supplemental slide presentation will be available on the Navios Holdings website at www.navios.com under the 'Investors' section by 8:00 am ETon the day of the call.

Conference Call details

Call Date/Time: Wednesday, February 19, 2014, at 8:30 am ET

Call Title: Navios Holdings Inc. Q4 2013 Financial Results Conference Call

US Dial In: +1.877.480.3873

International Dial In: +1.404.665.9927

Conference ID: 3140 3509

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: 3140 3509

This call will be simultaneously Webcast. The Webcast will be available on the Navios Holdings website, www.navios.com, under the 'Investors' section. The Webcast will be archived and available at the same Web address for two weeks following the call.

About Navios Maritime Holdings Inc.

Navios Maritime Holdings Inc. (NYSE: NM) is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain. For more information about Navios Holdings please visit our website: www.navios.com.

About Navios South American Logistics Inc.

Navios South American Logistics Inc. is one of the largest logistics companies in the Hidrovia region of South America, focusing on the Hidrovia region river system, the main navigable river system in the region, and on cabotage trades along the eastern coast of South America. Navios Logistics serves the storage and marine transportation needs of its petroleum, agricultural and mining customers through its port terminals, river barge and coastal cabotage operations. For more information about Navios Logistics please visit its website: www.navios-logistics.com.

About Navios Maritime Partners L.P.

Navios Partners (NYSE: NMM) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit its website: www.navios-mlp.com.

About Navios Maritime Acquisition Corporation

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: www.navios-acquisition.com.

Forward Looking Statements

This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and 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.

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. Adjusted EBITDA represents EBITDA excluding certain items as described under 'Earnings Highlights'. EBITDA and Adjusted EBITDA are 'non-GAAP financial measures' 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.

Contact:

Tel: +1.212.906.8643

Email: investors@navios.com


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Source: ENP Newswire


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