Navios Maritime Holdings Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2019

Revenue$363.6 million for 9M 2019$141.6 million for Q3 2019Cash from operating activities$80.8 million for 9M 2019$38.1 million for Q3 2019Adjusted EBITDA (a non-GAAP measure)$233.2 million for 9M 2019$98.8 million for Q3 2019Fleet renewal (2017-2019YTD)26% decrease in average age8% increase in dwt capacityLiquidation of Navios Europe I$13.1 million receivable as of September 30, 2019Liquidation expected to occur by 2019 YEMONACO, Nov. 25, 2019 (GLOBE NEWSWIRE) — Navios Maritime Holdings Inc. (“Navios Holdings” or “the Company”) (NYSE: NM), a global seaborne shipping and logistics company, today reported financial results for the third quarter and nine month period ended September 30, 2019.Angeliki Frangou, Chairman and Chief Executive Officer, stated, “I am pleased with the results of the third quarter of 2019. We reported revenue of $141.6 million, Adjusted EBITDA of $98.8 million and Adjusted Net Income of $35.65 million.”Angeliki Frangou continued, “Charter rates in the dry bulk sector are healthy with the capesize 5TC rate around $19,000 per day. NM earned a time charter equivalent rate of $15,534 per day for the third quarter of 2019. All of our delivered vessels are on the water generating revenue, as we have no vessels being retro-fitted with scrubbers.”HIGHLIGHTS – RECENT DEVELOPMENTSSale of ManagementIn August 2019, Navios Holdings sold its ship management division and certain general partnership interests (the “Transaction”) to N Shipmanagement Acquisition Corp. and related entities (“NSM”), affiliated with Company’s Chairman and Chief Executive Officer. The Company received aggregate consideration of $20.0 million (including assumption of liabilities) and favorable five-year service agreements under which NSM provides technical and commercial management services at a fixed  rate of $3,700 per day per vessel and administrative services, reimbursed at allocable cost. After the Transaction, the Company owns dry bulk vessels and various investments in maritime and infrastructure assets.The Company entered into a secured loan agreement with NSM, whereby the Company agreed to repay NSM $141.8 million (including post-closing adjustment) over a five-year period for the net amount of liabilities assumed by NSM in the Transaction. Agreement to Liquidate Navios Europe Inc.As of September 30, 2019, Navios Holdings had a receivable of $13.1 million from Navios Europe Inc. (“Navios Europe I”). On November 22, 2019, an agreement was reached to liquidate Navios Europe I. As a result of this liquidation, it is expected that Navios Holdings will receive the outstanding receivable amount, net of costs, in December 2019.Fleet UpdateIn October 2019, the Company agreed to sell to an unrelated third party the Navios Hios, a 2003-built Ultra Handymax vessel of 55,180 dwt, for a sale price of $7.7 million. The vessel is expected to be delivered to the buyers in the first quarter of 2020.In September 2019, the Company sold to an unrelated third party the Navios Primavera, a 2007-built Ultra Handymax vessel of 53,464 dwt, for a sale price of $10.3 million.Navios Holdings controls a fleet of 56 vessels (including one vessel agreed to be sold) totaling 6.0 million dwt, of which 30 are owned and 26 are chartered-in under long-term charters (collectively, the “Core Fleet”). The fleet consists of 18 Capesize, 28 Panamax, eight Ultra-Handymax and two Handysize vessels, with an average age of 7.6 years, basis fully delivered fleet.As of November 18, 2019, Navios Holdings has chartered-out 98.7% of available days for the remaining three months of 2019. Of these available days, 78.5% are chartered-out on fixed rate and 20.2% are chartered-out on index. The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining three months of 2019 is $13,857 per day.The above figures do not include the fleets of Navios South American Logistics Inc. (“Navios Logistics”) and vessels servicing contracts of affreightment.Exhibit II provides certain details of the Core Fleet of Navios Holdings. It does not include the fleets of Navios Logistics.Earnings HighlightsEBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per Share are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Holdings’ results calculated in accordance with U.S. GAAP.See Exhibit I under the heading, “Disclosure of Non-GAAP Financial Measures,” for a discussion of EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per Share of Navios Holdings (including Navios Logistics and Navios Containers), and EBITDA of Navios Logistics and Navios Containers (both on a stand-alone basis) and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.As of November 30, 2018, Navios Holdings obtained control over Navios Containers and consequently consolidated Navios Containers from that date onwards. Following the sale of Navios Containers general partnership interest effected on August 30, 2019, Navios Holdings deconsolidated Navios Containers from that date onwards. The results of operations of Navios Containers for the period consolidated under Navios Holdings have been reported as discontinued operations for all periods presented.Third Quarter 2019 and 2018 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):The third quarter 2019 and 2018 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
Revenue from dry bulk vessel operations for the three month period ended September 30, 2019 decreased by $8.1 million, or 9.5%, to $77.5 million, as compared to $85.6 million for the same period during 2018. The decrease in dry bulk revenue was mainly attributable to a decrease in available days by 18.5%, due to the vessels sold and certain charter-in vessels that were redelivered, partially mitigated by an increase in TCE per day by 9.3% to $15,534 per day in the three month period ended September 30, 2019 as compared to $14,210 per day in the same period in 2018.Revenue from the logistics business was $64.1 million for the three month period ended September 30, 2019 as compared to $55.9 million for the same period in 2018. The increase was mainly attributable to (i) a $8.0 million increase in revenue from the port terminal business mainly due to higher volumes transshipped in the grain port terminal, (ii) a $3.6 million increase in revenue from the barge business mainly due to higher volumes of liquid cargo transported and (iii) a $1.6 million increase in revenue from the cabotage business mainly due to more operating days of the cabotage fleet. The overall increase was partially mitigated by a $5.0 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port’s volumes of products sold.Revenue of Navios Containers for the period from July 1, 2019 to August 30, 2019 (deconsolidation effective date) was $24.4 million. Navios Containers’ results of operations were not included in the Company’s consolidated results of operations for the three month period ended September 30, 2018.Net Loss attributable to Navios Holdings’ common stockholders was $39.1 million for the three month period ended September 30, 2019, as compared to $1.8 million Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2018. Net Loss attributable to Navios Holdings’ common stockholders was affected by items described in the table above. Excluding these items, Adjusted Net Income attributable to Navios Holdings’ common stockholders for the three month period ended September 30, 2019 was $35.7 million, as compared to $0.9 million Adjusted Net Income attributable to Navios Holdings’ common stockholders for the same period in 2018. This increase in Adjusted Net Income was mainly due to (i) a $36.0 million increase in Adjusted EBITDA, (ii) a $0.8 million decrease in amortization for deferred drydock and special survey costs from continuing operations, (iii) a $0.4 million decrease in share-based compensation expense, (iv) a $4.5 million decrease in depreciation and amortization from continuing operations and (v) a $2.7 million decrease in interest expense and finance cost, net from continuing operations. This overall increase of $44.4 million was partially mitigated by (i) $5.8 million depreciation and amortization of Navios Containers for the period from July 1, 2019 to August 30, 2019, (ii) $2.9 million interest expense and finance cost, net of Navios Containers for the period from July 1, 2019 to August 30, 2019, (iii) a $0.7 million increase in income tax expense and (iv) $0.2 million amortization for deferred drydock and special survey costs of Navios Containers for the period from July 1, 2019 to August 30, 2019.Net Income of Navios Logistics, on a standalone basis, was $14.3 million for the three month period ended September 30, 2019 as compared to $6.7 million of Net income for the same period in 2018.Net Loss of Navios Containers, on a standalone basis, was $0.8 million for the period from July 1, 2019 to August 30, 2019 (deconsolidation effective date). Navios Containers’ results of operations were not included in the Company’s consolidated results of operations for the three month period ended September 30, 2018.Adjusted EBITDA of Navios Holdings for the three month period ended September 30, 2019 increased by $36.0 million to $98.8 million, as compared to $62.8 million for the same period in 2018. The increase in Adjusted EBITDA was primarily due to (i) a $0.1 million increase in revenue from continuing operations and $24.4 million revenue of Navios Containers for the period from July 1, 2019 to August 30, 2019, (ii) a $9.8 million  gain on sale of business recorded in the three month period ended September 30, 2019, (iii) a $8.8 million increase in other income, net from continuing operations, (iv) a $5.9 million increase in gain on bond extinguishment, (v) a $4.1 million decrease in time charter, voyage and logistics business expenses from continuing operations, (vi) a $0.8 million net loss from discontinued operations and (vii) a $7.4 million increase in equity in net earnings from affiliated companies. This overall increase of $61.3 million was partially mitigated by (i) a $2.8 million increase in direct vessel expenses from continuing operations (excluding the amortization of deferred drydock and special survey costs) and $11.1 million direct vessel expenses of Navios Containers (excluding the amortization of deferred drydock and special survey costs) for the period from July 1, 2019 to August 30, 2019, (ii) a $4.2 million increase in general and administrative expenses (excluding share-based compensation expenses) from continuing operations and $1.6 million general and administrative expenses of Navios Containers for the period from July 1, 2019 to August 30, 2019, (iii) $2.6 million other expense, net of Navios Containers for the period from July 1, 2019 to August 30, 2019, (iv) a $2.0 million increase in net income attributable to noncontrolling interest and (v) $1.0 million time charter and voyage expenses of Navios Containers for the period from July 1, 2019 to August 30, 2019.EBITDA of Navios Logistics, on a standalone basis, was $32.5 million for the three month period ended September 30, 2019, as compared to $25.5 million for the same period in 2018.EBITDA of Navios Containers, on a standalone basis, was $8.0 million for the period from July 1, 2019 to August 30, 2019.Nine Months Ended September 2019 and 2018 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):The information for the nine month period ended September 30, 2019 and 2018 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.
Revenue from dry bulk vessel operations for the nine month period ended September 30, 2019 decreased by $39.0 million, or 17.6%, to $183.1 million, as compared to $222.1 million for the same period in 2018. The decrease in dry bulk revenue was mainly attributable to: (i) a decrease in available days by 12.3%, due to the vessels sold and certain charter-in vessels that were redelivered and (ii) a decrease in TCE per day by 4.7% to $11,784 per day in the nine month period ended September 30, 2019 as compared to $12,368 per day in the same period in 2018.Revenue from the logistics business was $180.5 million for the nine month period ended September 30, 2019 as compared to $168.3 million for the same period in 2018. The increase was mainly attributable to (i) a $11.4 million increase in revenue from the port terminal business mainly due to higher volumes transshipped in the grain port terminal, (ii) a $9.5 million increase in revenue from the barge business mainly due to higher volumes of liquid and dry cargo transported, and (iii) a $5.8 million increase in revenue from the cabotage business mainly due to more operating days of the cabotage fleet. The overall increase was partially mitigated by a $14.5 million decrease in sales of products mainly due to a decrease in the Paraguayan liquid port’s volumes of products sold.Revenue of Navios Containers for the period from January 1, 2019 to August 30, 2019 (deconsolidation effective date) was $89.9 million and consisted of time charter revenues. Navios Containers’ results of operations were not included in the Company’s consolidated results of operations for the nine month period ended September 30, 2018.Net Loss of Navios Holdings was $80.9 million for the nine month period ended September 30, 2019, as compared to $68.0 million for the same period in 2018. Net Loss was affected by items described in the table above. Excluding these items, Adjusted Net Income of Navios Holdings for the nine month period ended September 30, 2019 was $34.5 million, as compared to $51.9 million Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2018. The $86.4 million increase in Adjusted Net Income was mainly due to (i) an increase in Adjusted EBITDA of $99.1 million; (ii) a decrease of $2.2 million in amortization for deferred drydock and special survey costs from continuing operations; (iii) a $1.3 million decrease in share-based compensation expense; (iv) a decrease in depreciation and amortization from continuing operations of $13.1 million; and (v) a decrease in interest expense and finance cost, net from continuing operations of $6.8 million. This overall increase in Adjusted Net Income was partially mitigated by (i) $22.9 million depreciation and amortization of Navios Containers for the period from January 1, 2019 to August 30, 2019; (ii) $10.5 million interest expense and finance cost, net of Navios Containers for the period from January 1, 2019 to August 30, 2019; (iii) an increase in income tax expense of $2.1 million; and (iv) $0.6 million amortization for deferred drydock and special survey costs of Navios Containers for the period from January 1, 2019 to August 30, 2019. Net Income of Navios Logistics, on a standalone basis, was $29.3 million for the nine month period ended September 30, 2019, as compared to $9.7 million for the same period in 2018.Adjusted EBITDA of Navios Holdings for the nine month period ended September 30, 2019 increased by $99.1 million to $233.2 million, as compared to $134.1 million for the same period in 2018. The $99.1 million increase in Adjusted EBITDA was primarily due to (i) $89.9 million revenue of Navios Containers for the period from January 1, 2019 to August 30, 2019; (ii) a $27.2 million increase in bond extinguishment gains; (iii) a $32.7 million increase in other income, net from continuing operations; (iv) a $17.7 million decrease in time charter, voyage and logistics business expenses from continuing operations; (v) a $9.8 million gain on sale of business recorded in the nine month period ended September 30, 2019; (vi) a $17.9 million increase in equity in net earnings from affiliated companies; and (vii) a $4.1 million net loss from discontinued operations. This overall increase of $199.3 million was partially mitigated by (i) a $26.8 million decrease in revenue from continuing operations; (ii) a $5.0 million increase in direct vessel expenses from continuing operations (excluding the amortization of deferred drydock and special survey costs) and $43.5 million direct vessel expenses of Navios Containers (excluding the amortization of deferred drydock and special survey costs) for the period from January 1, 2019 to August 30, 2019; (iii) a $5.2 million increase in general and administrative expenses (excluding share-based compensation expenses) from continuing operations and $6.7 million general and administrative expenses of Navios Containers for the period from January 1, 2019 to August 30, 2019; (iv) a $3.1 million increase in net income attributable to the noncontrolling interest; (v) $4.0 million time charter and voyage expenses of Navios Containers for the period from January 1, 2019 to August 30, 2019; and (vi) $5.9 million other expense, net of Navios Containers for the period from January 1, 2019 to August 30, 2019. EBITDA of Navios Logistics, on a standalone basis, was $84.2 million for the nine month period ended September 30, 2019, as compared to $64.8 million for the same period in 2018.EBITDA of Navios Containers, on a standalone basis, was $29.9 million for the period from January 1, 2019 to August 30, 2019.Fleet Summary Data:The following table reflects certain key indicators indicative of the performance of Navios Holdings’ dry bulk operations (excluding the Navios Logistics’ and Navios Containers’ fleets) and its fleet performance for the three and nine month periods ended September 30, 2019 and 2018, respectively.
Conference Call:As previously announced, Navios Holdings will host a conference call today, November 25, 2019, at 8:30 am ET, at which time Navios Holdings’ senior management will provide highlights and commentary on earnings results for the third quarter and nine month period ended September 30, 2019.A supplemental slide presentation will be available on the Navios Holdings website at www.navios.com under the “Investors” section by 8:00 am ET on the day of the call.Conference Call details:Call Date/Time: Monday, November 25, 2019 at 8:30 am ET
Call Title: Navios Holdings Q3 2019 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 697 1646The 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: 697 1646This 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 seaborne shipping and logistics company focused on the transport and transshipment of dry bulk 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 Containers L.P.Navios Maritime Containers L.P. (NASDAQ: NMCI) is a growth vehicle dedicated to the container sector of the maritime industry. For more information, please visit its website at www.navios-containers.com.About Navios Maritime Partners L.P.Navios Maritime Partners L.P. (NYSE: NMM) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit its website at www.navios-mlp.com.About Navios Maritime Acquisition CorporationNavios Acquisition (NYSE: NNA) is an owner and operator of tanker vessels focusing on 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 – Safe HarborThis press release and our earnings call contain and will contain 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, including expected cash flow generation, future contracted revenues, potential capital gains, our ability to take advantage of dislocation in the market and any market recovery, and Navios Holdings’ growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “may,” “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 revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Holdings at the time these statements were made. 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 uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles, our continued ability to enter into long-term time charters, our ability to maximize the use of our vessels, expected demand in the dry cargo shipping sector in general and the demand for our Panamax, Capesize, Ultra Handymax and Handysize vessels in particular, fluctuations in charter rates for dry cargo carriers vessels, the aging of our fleet and resultant increases in operations costs, the loss of any customer or charter or vessel, the financial condition of our customers, changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance, and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions, competitive factors in the market in which Navios Holdings operates, the value of our publicly traded subsidiaries, 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, including its Forms 20-F and Forms 6-K. 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. Navios Holdings makes no prediction or statement about the performance of its common stock or debt securities.Contact:Navios Maritime Holdings Inc.
+1.212.906.8643
investors@navios.com   
EXHIBIT INAVIOS MARITIME HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of U.S. dollars — except share and per share data)


NAVIOS MARITIME HOLDINGS INC.
Other Financial Data