ENP Newswire - 23 May 2014
Release date- 21052014 - MONACO - Navios Maritime Holdings Inc. (NYSE: NM) a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the quarter ended March 31, 2014.
Angeliki Frangou, Chairman and Chief Executive Officer, stated, 'We are pleased with our results for the first quarter of 2014, for which we reported net income of $2.0 million and EBITDA of $59.8 million. We are also pleased to again announce a dividend of $0.06 for the first quarter of 2014, representing a yield of 2.9%.'
Angeliki Frangou continued, 'By establishing and developing in house technical and commercial management, we have been able to achieve a significant competitive advantage through economies of scale. We self-manage our vessels because we believe that by doing so, we operate more efficiently, to the material benefit of our stakeholders. Today, we believe we have world-class talent attending to our business in every department in our firm.
This means better decisions are being made regarding the daily operation and maintenance of our vessels, more informed decisions are being made about dry-docking and chartering of our vessels and better procedures are being used in operating our company. Navios Holdings currently has almost 200 professionals attending to its business globally, excluding our crew of about 3,000. As we get larger, Navios Holdings also enjoys purchasing power with suppliers. We have been able to share these efficiencies and savings with the Navios Group.'
Navios Asia Update
In May 2014, Navios Holdings became the sole shareholder of Navios Asia LLC ('Navios Asia'), owner of the N Amalthia and the N Bonanza vessels, by acquiring the remaining 49% noncontrolling interest for a total cash consideration of $10.9 million ($10.0 million net).
In May 2014, Navios Asia entered into an agreement to purchase one Japanese new building 180,600 dwt Capesize vessel. The vessel's acquisition price is $54.0 million and is scheduled for delivery in June of 2014. The vessel will be financed with debt and cash from operations.
In March 2014, Navios Holdings entered into an agreement to terminate its credit default insurance with its third party insurer. As a result of the agreement, Navios Holdings received in the second quarter:
$11.3 million in cash as follows:
$4.1 million lump sum compensation from its third party insurer and
$7.2 million from the sale of a defaulted counterparty claim.
In addition, Navios Holdings expects:
$0.6 million net present value benefit from the upfront lump sum payment and
$6.7 million maximum benefit by eliminating market mitigation obligation.
On May 15, 2014, the Board of Directors declared a quarterly cash dividend for the first quarter of 2014 of $0.06 per share of common stock. The dividend is payable on June 26, 2014 to stockholders of record as of June 18, 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 April 22, 2014, Navios Logistics and Navios Logistics Finance (US) Inc. completed the sale of $375.0 million of 7.25% senior notes due 2022. The net proceeds of this offering were used (i) to fund its tender offer and consent solicitation for certain outstanding notes and pay related fees and expenses, (ii) to discharge and redeem any of such notes that are not purchased in the tender offer after all conditions to the tender offer are satisfied or waived, including the payment of any related fees and expenses and any redemption premium and (iii) for general corporate purposes.
Navios Maritime Partners L.P. ('Navios Partners')
In May 2014, Navios Holdings received $7.5 million from Navios Partners representing the cash distribution for the first quarter of 2014.
Navios Maritime Acquisition Corporation ('Navios Acquisition')
In April 2014, Navios Holdings received $3.6 million from Navios Acquisition representing the cash dividend for the fourth quarter of 2014.
Time Charter Coverage
As of May 20, 2014, Navios Holdings has chartered-out 65.8% and 9.0% of available days for 2014 and 2015, respectively, equivalent to $150.2 million and $24.1 million in revenue, respectively. The average daily charter-out rate for the core fleet is $13,498 and $15,818 for 2014 and 2015, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2014 is $13,759.
The above figures do not include the fleet of Navios Logistics and vessels servicing Contracts of Affreightment.
Navios Holdings controls a fleet of 63 vessels totaling 6.2 million dwt, of which 39 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 7.2 years. Additionally, Navios Holdings has (i) seven newbuilding charter-in vessels expected to be delivered at various dates through 2016 and (ii) three newbuilding owned vessels, one of which is expected to be delivered in the second quarter of 2014 and two of which are expected to be delivered in the fourth 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 March 31, 2014:
Net Debt to Total Capitalization of 49%.
Cash of $220.9 million.
First Quarter 2014 and 2013 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):
The first quarter 2014 and 2013 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.
Revenue from drybulk vessel operations for the three months ended March 31, 2014 was $76.6 million as compared to $60.6 million for the same period during 2013.
The increase in drybulk revenue was mainly attributable to (i) an increase in the time charter equivalent rate ('TCE') per day by 7.2% to $12,709 per day in the first quarter of 2014, as compared to $11,860 per day in the same period of 2013; (ii) an increase in available days for owned vessels of 534 days and (iii) an increase in short-term charter-in and long-term charter-in fleet available days of 389 days.
Revenue from the logistics business was $45.6 million for the three months ended March 31, 2014 as compared to $73.2 million for the same period of 2013. This decrease was mainly attributable to the decrease in the Paraguayan liquid port's volume of products sold.
EBITDA of Navios Holdings for the three months ended March 31, 2014 increased by $21.3 million to $59.8 million as compared to $38.5 million for the same period of 2013.
The $21.3 million increase in EBITDA was primarily due to (i) a $5.4 million increase in other income, net; (ii) a $18.8 million decrease in time charter, voyage and logistics business expenses; (iii) a $2.1 million increase in net income attributable to the noncontrolling interest; (iv) a $8.3 million increase in equity in net earnings from affiliated companies and (v) a $0.1 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs).
This overall increase of $34.7 million was mitigated by (i) a $11.7 million decrease in revenue and (ii) a $1.7 million increase in general and administrative expenses (excluding share-based compensation expenses).
EBITDA of Navios Logistics was $14.0 million for the three month period ended March 31, 2014 as compared to $14.1 million for the same period in 2013.
Net income of Navios Holdings for the three months ended March 31, 2014 was $2.0 million as compared to a $10.2 million loss for the same period of 2013. The $12.2 million increase was mainly due to an increase in EBITDA of $21.3 million.
This increase was partially mitigated by (i) an increase in interest income/(expense) and finance cost, net of $2.7 million; (ii) an increase in depreciation and amortization of $1.4 million; (iii) a decrease in income tax benefit of $4.0 million; (iv) an increase of $0.3 million in share-based compensation expense and (v) an increase of $0.7 million in amortization for deferred drydock and special survey costs.
As previously announced, Navios Holdings will host a conference call today, May 21, 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 first quarter ended March 31, 2014.
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, May 21, 2014, at 8:30 am ET
Call Title: Navios Holdings Inc. Q1 2014 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 3424 9265
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: 3424 9265
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.
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. 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.