• $363.6 million for 9M 2019
• $141.6 million for Q3 2019
Cash from operating activities
• $80.8 million for 9M 2019
• $38.1 million for Q3 2019
Adjusted EBITDA (a non-GAAP measure)
• $233.2 million for 9M 2019
• $98.8 million for Q3 2019
Fleet renewal (2017-2019YTD)
• 26% decrease in average age
• 8% increase in dwt capacity
Liquidation of Navios Europe I
• $13.1 million receivable as of September 30, 2019
• Liquidation expected to occur by 2019 YE
Monaco - November 25, 2019
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 DEVELOPMENTS
Sale of Management
In 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.
In 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.
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 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.
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 dry bulk commodities including iron ore, coal and grain.
Navios Maritime Holdings Inc. press release