Welcome!

News Feed Item

Navios Maritime Holdings Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2014

MONACO -- (Marketwired) -- 08/21/14 -- Navios Maritime Holdings Inc. ("Navios Holdings" or "the Company") (NYSE: NM)

  • Revenue
    • $145.4 million Revenue for Q2 2014; $267.6 million for H1 2014

  • Adjusted EBITDA
    • 33% increase to $51.4 million for Q2 2014;
    • 44% increase to $111.2 million for H1 2014

  • Dividend of $0.06 per share for Q2 2014

  • $170 million issuance of Preferred Stock 2014YTD
    • $120 million in July 2014
    • $50 million in January 2014

  • One of the largest US-listed dry bulk fleets
    • 63 vessels controlled - 6.2 million dwt, 54 vessels in the water - 5.3 million dwt
      • 18 Capesize vessels
      • 23 Panamax vessels
      • 22 Ultra Handymax and Handysize vessels

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 second quarter and six months ended June 30, 2014.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, "We are pleased with our results for the second quarter of 2014, for which we reported revenue of $145.4 million, a 16% increase and Adjusted EBITDA of $51.4 million, a 33% increase compared to the same period last year. We are also pleased to again announce a dividend of 6 cents for Q2 2014 representing a yield of 2.6%."

Angeliki Frangou continued, "We have created a significant competitive advantage through our in house technical and commercial management. These skills reduce our daily opex 34% below the industry average and control G&A expense so that they are below our public peers. These skills harness scale and create operating leverage by reducing costs in a way that would not be possible, in our view, with a third party provider."

HIGHLIGHTS -- RECENT DEVELOPMENTS

Navios Holdings

Issuances of American Depositary Shares Representing Preferred Stock

On July 8, 2014, Navios Holdings completed the sale of 4,800,000 American Depositary Shares, including 600,000 American Depositary Shares sold as part of the exercise of an overallotment option granted to the underwriters, each of which represents 1/100th of a share of the Company's Series H Cumulative Redeemable Perpetual Preferred Stock (the "Series H"), with a liquidation preference of $2,500.00 per share, priced at $25.00 per American Depositary Share. Dividends will be payable at a rate of 8.625% per annum of the stated liquidation preference. The American Depositary Shares are listed on the New York Stock Exchange under the symbol "NMPrH". The net proceeds of approximately $115.8 million from the offering (after deducting underwriting discounts and estimated offering expenses) will be used for general corporate purposes, including acquisition of vessels.

Navios Holdings has raised in 2014 YTD total gross proceeds of $170.0 million Preferred Stock including $50.0 million raised in January 2014.

Fleet Update

On June 4, 2014, Navios Holdings took delivery of the Navios Gem, a 2014-Japanese built 181,336 dwt Capesize vessel for a purchase price of $54.2 million, of which $24.2 million was paid in cash and $30.0 million was financed through a new loan with DVB Bank, Credit Agricole Corporate and Investment Bank and Norddeutsche Landesbank. The loan bears interest at a rate of LIBOR plus 275 basis points and is repayable in 24 quarterly installments of $0.5 million, with a final balloon payment of $18.8 million on the last repayment date.

Following the delivery of Navios Gem, 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 54 vessels (16 Capesize, 17 Panamax, 19 Ultra Handymax and two Handysize) totaling 5.3 million dwt. The current average age of the operating fleet is 7.3 years. Additionally, Navios Holdings has (i) seven newbuilding charter-in vessels expected to be delivered at various dates through 2016; and (ii) two newbuilding owned vessels 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.

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

Reaching the highest quarterly Adjusted EBITDA since its incorporation, Navios Logistics reported for the three months ended June 30, 2014, revenue of $70.0 million increased by 10.2% and Adjusted EBITDA of $21.4 million increased by 21.9%.

In the second quarter of 2014, Navios Logistics took delivery of 36 newbuilding barges in China and positioned them in South America. These barges, along with three second-hand pushboats that were acquired in January 2014, have been placed to service three six-year time charter contracts at $14,500, net per day each, with an investment grade counterparty. Navios Logistics estimates that it will generate approximately $10.0 million annual EBITDA from the three contracts. EBITDA estimates assume expenses approximating current operating costs and 360 revenue days per year per convoy.

In July 2014, Navios Logistics took delivery of additional 36 newbuilding barges in China, which are currently being transported to South America.

In August 2014, Navios Logistics completed dredging works in its port facility in Nueva Palmira, Uruguay, as part of the expansion of its port terminal infrastructure to serve a 20-year storage and transshipment agreement with Vale International S.A.

Dividend Policy

On August 14, 2014, the Board of Directors declared a quarterly cash dividend for the second quarter of 2014 of $0.06 per share of common stock. The dividend is payable on September 26, 2014 to stockholders of record as of September 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 Maritime Partners L.P. ("Navios Partners")

In August 2014, Navios Holdings received $7.5 million from Navios Partners representing the cash distribution for the second quarter of 2014.

Navios Maritime Acquisition Corporation ("Navios Acquisition")

In July 2014, Navios Holdings received $3.6 million from Navios Acquisition representing the cash dividend for the first quarter of 2014.

Time Charter Coverage

As of August 18, 2014, Navios Holdings has chartered-out 74.6% (85.5% including index-linked charters) and 4.5% (15.4% including index-linked charters) of available days for 2014 and 2015, respectively, expected to generate $162.1 million and $16.0 million in revenue, respectively. The average daily charter-out rate for the core fleet is $12,621 and $20,966 for 2014 and 2015, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2014 is $13,400.

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

Earnings Highlights

As of June 30, 2014:

  • Net Debt to Total Capitalization of 51.5% (45.3% after the issuance of the Series H in July 2014).

  • Cash of $235.1 million ($350.9 million including net proceeds from issuance of the Series H in July 2014).

Second Quarter 2014 and 2013 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The second quarter 2014 and 2013 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. 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 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.

                                                Three Month    Three Month
                                                   Period         Period
                                                   Ended          Ended
                                                  June 30,       June 30,
                                                    2014           2013
                                               -------------  -------------
                                                (unaudited)    (unaudited)
Revenue                                        $     145,408  $     125,572
Adjusted EBITDA (*)                            $      51,446  $      38,800
Net Loss                                       $     (36,680) $     (15,881)
Adjusted Net Loss (*)                          $      (7,715) $     (15,881)
Basic Losses per Share                         $       (0.37) $       (0.16)
Adjusted Basic Losses per Share (*)            $       (0.09) $       (0.16)

(*) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Losses per Share
    for the three months ended June 30, 2014 have been adjusted to exclude
    (i) $17.4 million portion of loss on Navios Logistics' bond
    extinguishment; and (ii) $11.5 million non-cash loss on available-for-
    sale securities.

Revenue from dry bulk vessel operations for the three months ended June 30, 2014 was $75.4 million as compared to $62.1 million for the same period during 2013. The increase in dry bulk revenue was mainly attributable to (i) an increase in the time charter equivalent rate ("TCE") per day by 12.5% to $11,923 per day in the second quarter of 2014, as compared to $10,600 per day in the same period of 2013; (ii) an increase in available days for owned vessels by 556 days; and (iii) an increase in charter-in fleet available days by 253 days.

Revenue from the logistics business was $70.0 million for the three months ended June 30, 2014 as compared to $63.5 million for the same period of 2013. This increase was mainly attributable to (i) the increase in products transported in the dry port terminal; (ii) commencement of operations of three new dry cargo convoys in the barge business; and (iii) the increase in the cabotage fleet's operating days and higher time charter rates achieved.

Adjusted EBITDA of Navios Holdings for the three months ended June 30, 2014 increased by $12.6 million to $51.4 million as compared to $38.8 million for the same period of 2013. The $12.6 million increase in Adjusted EBITDA was primarily due to (i) a $19.8 million increase in revenue; (ii) a $2.1 million decrease in time charter, voyage and logistics business expenses; (iii) a $3.0 million increase in equity in net earnings from affiliated companies; and (iv) a $0.6 million decrease in general and administrative expenses (excluding share-based compensation expenses). This overall increase of $25.5 million was mitigated by (i) a $5.7 million decrease in other income, net (excluding the non-cash loss on available-for-sale securities); (ii) a $6.7 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); and (iii) a $0.5 million increase in net income attributable to the noncontrolling interest (excluding the portion of loss on Navios Logistics' bond extinguishment).

Adjusted EBITDA of Navios Logistics was $21.4 million (adjusted for $27.3 million loss on bond extinguishment) for the three month period ended June 30, 2014 as compared to $17.6 million for the same period in 2013.

Adjusted Net Loss of Navios Holdings for the three months ended June 30, 2014 was $7.7 million as compared to a $15.9 million loss for the same period of 2013. The $8.2 million decrease in Adjusted Net Loss was mainly due to an increase in Adjusted EBITDA of $12.6 million. This increase was partially offset by (i) an increase in interest expense and finance cost, net of $1.1 million; (ii) an increase in depreciation and amortization of $1.6 million; (iii) an increase in income tax expense of $0.7 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.

First Half of 2014 and 2013 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The information for the six month period ended June 30, 2014 and 2013 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. 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 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.

                                                  Six Month     Six Month
                                                    Period        Period
                                                    Ended         Ended
                                                   June 30,      June 30,
                                                     2014          2013
                                                ------------- -------------
                                                 (unaudited)   (unaudited)
Revenue                                         $     267,599 $     259,409
Adjusted EBITDA (*)                             $     111,226 $      77,274
Net Loss                                        $     (34,627)$     (26,036)
Adjusted Net Loss (*)                           $      (5,662)$     (26,036)
Basic Losses per Share                          $       (0.36)$       (0.26)
Adjusted Basic Losses per Share (*)             $       (0.08)$       (0.26)

(*) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Losses per Share
    for the six months ended June 30, 2014 have been adjusted to exclude (i)
    $17.4 million portion of loss on Navios Logistics' bond extinguishment;
    and (ii) $11.5 million non-cash loss on available-for-sale securities.

Revenue from dry bulk vessel operations for the six months ended June 30, 2014 was $152.0 million as compared to $122.7 million for the same period during 2013. The increase in dry bulk revenue was mainly attributable to (i) an increase in TCE per day by 10.5% to $12,389 per day in the first half of 2014, as compared to $11,211 per day in the same period of 2013; (ii) an increase in available days for owned vessels by 1,090 days; and (iii) an increase in charter-in fleet available days by 574 days.

Revenue from the logistics business was $115.6 million for the six months ended June 30, 2014 as compared to $136.7 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, partially mitigated by (i) an increase in products transported in the dry port terminal; (ii) commencement of operations of three new dry cargo convoys in the barge business; and (iii) higher time charter rates achieved in the cabotage business.

Adjusted EBITDA of Navios Holdings for the six month period ended June 30, 2014 increased by $33.9 million to $111.2 million as compared to $77.3 million for the same period of 2013. The $33.9 million increase in Adjusted EBITDA was primarily due to (i) a $8.2 million increase in revenue; (ii) a $20.9 million decrease in time charter, voyage and logistics business expenses; (iii) a $11.3 million increase in equity in net earnings from affiliated companies; and (iv) a $1.5 million decrease in net income attributable to the noncontrolling interest (excluding the portion of loss on Navios Logistics' bond extinguishment). This overall increase of $41.9 million was partially mitigated by (i) a $0.3 million decrease in other income, net (excluding the non-cash loss on available-for-sale securities); (ii) a $6.5 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); and (iii) a $1.2 million increase in general and administrative expenses (excluding share-based compensation expenses).

Adjusted EBITDA of Navios Logistics was $35.4 million (adjusted for $27.3 million loss on bond extinguishment) for the six month period ended June 30, 2014 as compared to $31.7 million for the same period in 2013.

Adjusted Net Loss of Navios Holdings for the six months ended June 30, 2014 was $5.7 million as compared to $26.0 million for the same period of 2013. The $20.3 million decrease in Adjusted Net Loss was mainly due to an increase in Adjusted EBITDA of $33.9 million. This increase was partially offset by (i) an increase in interest expense and finance cost, net of $3.9 million; (ii) an increase in depreciation and amortization of $2.9 million; (iii) an increase in income tax expense of $4.7 million; (iv) an increase of $0.6 million in share-based compensation expense; and (v) an increase of $1.5 million in amortization for deferred drydock and special survey costs.

Fleet Summary Data:

The following table reflects certain key indicators indicative of the performance of the Navios Holdings' dry bulk operations (excluding the Navios Logistics fleet) and its fleet performance for the three and six month periods ended June 30, 2014 and 2013, respectively.

                         Three Month  Three Month   Six Month    Six Month
                            Period       Period       Period       Period
                            Ended        Ended        Ended        Ended
                           June 30,     June 30,     June 30,     June 30,
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------
                         (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
Available Days (1)             5,395        4,586       10,580        8,916
Operating Days (2)             5,391        4,449       10,555        8,669
Fleet Utilization (3)           99.9%        97.0%        99.8%        97.2%
Equivalent Vessels (4)            59           50           58           49
TCE (5)                  $    11,923  $    10,600  $    12,389  $    11,211

(1) Available days for the fleet are total calendar days the vessels were in
    Navios Holdings' possession for the relevant period after subtracting
    off-hire days associated with major repairs, drydocking or special
    surveys. The shipping industry uses available days to measure the number
    of days in a relevant period during which vessels should be capable of
    generating revenues.
(2) Operating days are the number of available days in the relevant period
    less the aggregate number of days that the vessels are off-hire due to
    any reason, including unforeseen circumstances. The shipping industry
    uses operating days to measure the aggregate number of days in a
    relevant period during which vessels actually generate revenues.
(3) Fleet utilization is the percentage of time that Navios Holdings'
    vessels were available for generating revenue, and is determined by
    dividing the number of operating days during a relevant period by the
    number of available days during that period. The shipping industry uses
    fleet utilization to measure a company's efficiency in finding suitable
    employment for its vessels.
(4) Equivalent Vessels is defined as the total available days during a
    relevant period divided by the number of days of this period.
(5) TCE is defined as voyage and time charter revenues less voyage expenses
    during a relevant period divided by the number of available days during
    the period.

Conference Call:

As previously announced, Navios Holdings will host a conference call today, August 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 second quarter and six months ended June 30, 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 ET on the day of the call.

Conference Call details:
Call Date/Time: Thursday, August 21, 2014, at 8:30 am ET
Call Title: Navios Holdings Inc. Q2 2014 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 6557 9592
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: 6557 9592

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 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 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 - Safe Harbor

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 dry bulk 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.

                                                                  EXHIBIT I

                       NAVIOS MARITIME HOLDINGS INC.
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of U.S. dollars -- except share and per share data)

                      Three Month   Three Month    Six Month     Six Month
                         Period        Period        Period        Period
                         Ended         Ended         Ended         Ended
                        June 30,      June 30,      June 30,      June 30,
                         2014          2013          2014          2013
                     ------------  ------------  ------------  ------------
                      (unaudited)   (unaudited)   (unaudited)   (unaudited)
Revenue              $    145,408  $    125,572  $    267,599  $    259,409
Time charter, voyage
 and logistics
 business expenses        (63,514)      (65,632)     (114,692)     (135,640)
Direct vessel
 expenses                 (33,840)      (26,444)      (62,168)      (54,139)
General and
 administrative
 expenses                  (9,567)       (9,873)      (20,598)      (18,835)
Depreciation and
 amortization             (25,828)      (24,233)      (51,502)      (48,556)
Interest expense and
 finance cost, net        (28,521)      (27,372)      (56,567)      (52,730)
Gain on sale of
 assets                        --            18            --            18
Loss on bond
 extinguishment           (27,281)           --       (27,281)           --
Other
 (expense)/income,
 net                       (7,481)        9,778        (5,415)        6,474
                     ------------  ------------  ------------  ------------
Loss before equity
 in net earnings of
 affiliated
 companies                (50,624)      (18,186)      (70,624)      (43,999)
Equity in net
 earnings of
 affiliated
 companies                  7,079         4,127        29,497        18,250
                     ------------  ------------  ------------  ------------
Loss before taxes    $    (43,545) $    (14,059) $    (41,127) $    (25,749)
Income tax
 (expense)/benefit           (848)         (128)       (1,136)        3,572
                     ------------  ------------  ------------  ------------
Net loss                  (44,393)      (14,187)      (42,263)      (22,177)
Less: Net
 loss/(income)
 attributable to the
 noncontrolling
 interest                   7,713        (1,694)        7,636        (3,859)
                     ------------  ------------  ------------  ------------
Net loss
 attributable to
 Navios Holdings
 common stockholders $    (36,680) $    (15,881) $    (34,627) $    (26,036)
                     ============  ============  ============  ============
Loss attributable to
 Navios Holdings
 common
 stockholders, basic $    (38,253) $    (16,304) $    (37,427) $    (26,877)
                     ============  ============  ============  ============
Loss attributable to
 Navios Holdings
 common
 stockholders,
 diluted             $    (38,253) $    (16,304) $    (37,427) $    (26,877)
                     ============  ============  ============  ============
Basic net losses per
 share attributable
 to Navios Holdings
 common stockholders $      (0.37) $      (0.16) $      (0.36) $      (0.26)
                     ============  ============  ============  ============
Weighted average
 number of shares,
 basic                102,947,944   101,783,378   102,718,368   101,771,451
Diluted net losses
 per share
 attributable to
 Navios Holdings
 common stockholders $      (0.37) $      (0.16) $      (0.36) $      (0.26)
                     ============  ============  ============  ============
Weighted average
 number of shares,
 diluted              102,947,944   101,783,378   102,718,368   101,771,451
                     ============  ============  ============  ============



                       NAVIOS MARITIME HOLDINGS INC.
                            Other Financial Data

                                                  June 30,     December 31,
                                                    2014           2013
                                                 (unaudited)   (unaudited)
                                               -------------  -------------
ASSETS
Cash and cash equivalents                      $     232,435  $     187,831
Restricted cash                                        2,631          2,041
Other current assets                                 178,662        150,114
Deposits for vessel acquisitions                      17,315             28
Vessels, port terminal and other fixed assets,
 net                                               1,875,291      1,808,855
Other noncurrent assets                              428,420        418,744
Goodwill and other intangibles                       342,283        352,000
                                               -------------  -------------
Total assets                                   $   3,077,037  $   2,919,613
                                               =============  =============


LIABILITIES AND EQUITY
Current liabilities, including current portion
 of long-term debt                                   204,639        149,767
Senior and ship mortgage notes, net of
 discount and including premium                    1,375,000      1,293,156
Long-term debt, net of current portion               227,451        198,832
Other noncurrent liabilities                          83,906         88,523
Total stockholders' equity                         1,186,041      1,189,335
                                               -------------  -------------
Total liabilities and stockholders' equity     $   3,077,037  $   2,919,613
                                               =============  =============



                                                 Six Month      Six Month
                                               Period Ended    Period Ended
                                               June 30, 2014  June 30, 2013
                                               -------------  -------------
                                                (unaudited)    (unaudited)
Net cash provided by operating activities      $      40,492  $      37,873
Net cash used in investing activities          $    (128,069) $     (86,783)
Net cash provided by financing activities      $     132,181  $      62,139

Disclosure of Non-GAAP Financial Measures

Adjusted EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, unless otherwise stated and excludes certain items as described under "Earnings Highlights". Adjusted 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.

Adjusted 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 Adjusted EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of Adjusted EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

Navios Logistics Adjusted EBITDA is used to measure company's operating performance.

The following tables provide a reconciliation of Adjusted EBITDA of Navios Holdings and Navios Logistics, which in the case of Navios Holdings is on a consolidated basis:

Navios Holdings Reconciliation of Adjusted EBITDA to Cash from Operations

                                                  June 30,       June 30,
Three Months Ended                                  2014           2013
                                               -------------  -------------
(in thousands of U.S. dollars)                  (unaudited)    (unaudited)

Net cash provided by operating activities      $      10,940  $      22,472
Net increase/(decrease) in operating assets           29,695        (28,735)
Net (increase)/decrease in operating
 liabilities                                         (37,125)        20,110
Net interest cost                                     28,521         27,372
Deferred finance charges                                (845)        (1,234)
Expenses related to Navios Logistics bond
 extinguishment                                       (4,786)            --
Provision for losses on accounts receivable             (308)           272
Unrealized gain on FFA derivatives                        --             88
Equity in affiliates, net of dividends
 received                                             (1,774)        (5,407)
Payments for drydock and special survey                2,003          5,538
Gain on sale of assets                                    --             18
Noncontrolling interest                                7,713         (1,694)
Portion of loss on Navios Logistics bond
 extinguishment                                       17,412             --
                                               -------------  -------------
Adjusted EBITDA                                $      51,446  $      38,800
                                               =============  =============


Navios Logistics Adjusted EBITDA Reconciliation to Net (Loss)/Income

                                                  June 30,       June 30,
Three Months Ended                                  2014           2013
                                               -------------  -------------
(in thousands of U.S. dollars)                  (unaudited)    (unaudited)

Net (loss)/income attributable to Navios
 Logistics shareholders                        $     (21,435) $       4,423
Depreciation and amortization                          5,982          5,779
Amortization of deferred drydock and special
 survey costs                                          1,394            667
Interest expense and finance cost, net                 7,446          6,657
Income tax expense                                       758             57
Loss on bond extinguishment                           27,281             --
                                               -------------  -------------
Adjusted EBITDA                                $      21,426  $      17,583
                                               =============  =============


Navios Holdings Reconciliation of Adjusted EBITDA to Cash from Operations

                                                  June 30,       June 30,
Six Months Ended                                    2014           2013
                                               -------------  -------------
(in thousands of U.S. dollars)                  (unaudited)    (unaudited)

Net cash provided by operating activities      $      40,492  $      37,873
Net increase/(decrease) in operating assets           29,347        (22,083)
Net (increase)/decrease in operating
 liabilities                                         (47,928)         9,578
Net interest cost                                     56,567         52,730
Deferred finance charges                              (1,736)        (2,932)
Expenses related to Navios Logistics bond
 extinguishment                                       (4,786)            --
Provision for losses on accounts receivable             (489)           (45)
Unrealized losses on FFA derivatives                      --            (69)
Equity in affiliates, net of dividends
 received                                              9,984         (2,206)
Payments for drydock and special survey                4,727          8,269
Gain on sale of assets                                    --             18
Noncontrolling interest                                7,636         (3,859)
Portion of loss on Navios Logistics bond
 extinguishment                                       17,412             --
                                               -------------  -------------
Adjusted EBITDA                                $     111,226  $      77,274
                                               =============  =============


Navios Logistics Adjusted EBITDA Reconciliation to Net (Loss)/Income

                                                  June 30,       June 30,
Six Months Ended                                    2014           2013
                                               -------------  -------------
(in thousands of U.S. dollars)                  (unaudited)    (unaudited)

Net (loss)/income attributable to Navios
 Logistics shareholders                        $     (21,612) $      10,357
Depreciation and amortization                         12,049         11,872
Amortization of deferred drydock and special
 survey costs                                          2,550          1,151
Interest expense and finance cost, net                14,162         12,038
Income tax expense/(benefit)                             958         (3,713)
Loss on bond extinguishment                           27,281             --
                                               -------------  -------------
Adjusted EBITDA                                $      35,388  $      31,705
                                               =============  =============



                                                           EXHIBIT II

Owned Vessels

                                                        Deadweight
Vessel Name              Vessel Type    Year Built   (in metric tons)
--------------------   --------------   ----------   ----------------
Navios Serenity           Handysize        2011           34,690
Navios Ionian          Ultra Handymax      2000           52,067
Navios Horizon         Ultra Handymax      2001           50,346
Navios Herakles        Ultra Handymax      2001           52,061
Navios Achilles        Ultra Handymax      2001           52,063
Navios Vector          Ultra Handymax      2002           50,296
Navios Meridian        Ultra Handymax      2002           50,316
Navios Mercator        Ultra Handymax      2002           53,553
Navios Arc             Ultra Handymax      2003           53,514
Navios Hios            Ultra Handymax      2003           55,180
Navios Kypros          Ultra Handymax      2003           55,222
Navios Astra           Ultra Handymax      2006           53,468
Navios Ulysses         Ultra Handymax      2007           55,728
Navios Celestial       Ultra Handymax      2009           58,063
Navios Vega            Ultra Handymax      2009           58,792
Navios Magellan            Panamax         2000           74,333
Navios Star                Panamax         2002           76,662
Navios Northern Star       Panamax         2005           75,395
Navios Amitie              Panamax         2005           75,395
Navios Taurus              Panamax         2005           76,596
Navios Asteriks            Panamax         2005           76,801
Navios Galileo             Panamax         2006           76,596
N Amalthia                 Panamax         2006           75,318
N Bonanza                  Panamax         2006           76,596
Navios Avior               Panamax         2012           81,355
Navios Centaurus           Panamax         2012           81,472
Navios Stellar            Capesize         2009           169,001
Navios Bonavis            Capesize         2009           180,022
Navios Happiness          Capesize         2009           180,022
Navios Phoenix            Capesize         2009           180,242
Navios Lumen              Capesize         2009           180,661
Navios Antares            Capesize         2010           169,059
Navios Etoile             Capesize         2010           179,234
Navios Bonheur            Capesize         2010           179,259
Navios Altamira           Capesize         2011           179,165
Navios Azimuth            Capesize         2011           179,169
Navios Gem                Capesize         2014           181,336



Long term Chartered-in Fleet in Operation

                                       Year      Deadweight      Purchase
Vessel Name             Vessel Type    Built  (in metric tons)  Option(1)
--------------------  --------------  ------  ----------------  ---------
Navios Lyra              Handysize     2012        34,718        Yes (2)
Navios Apollon        Ultra Handymax   2000        52,073           No
Navios Primavera      Ultra Handymax   2007        53,464          Yes
Navios Armonia        Ultra Handymax   2008        55,100           No
Navios Oriana         Ultra Handymax   2012        61,442          Yes
Navios Mercury        Ultra Handymax   2013        61,393          Yes
Navios Libra II           Panamax      1995        70,136           No
Navios Altair             Panamax      2006        83,001           No
Navios Esperanza          Panamax      2007        75,356           No
Golden Heiwa              Panamax      2007        76,662           No
Navios Marco Polo         Panamax      2011        80,647          Yes
Navios Southern Star      Panamax      2013        82,224          Yes
Beaufiks                 Capesize      2004        180,310         Yes
Rubena N                 Capesize      2006        203,233          No
King Ore                 Capesize      2010        176,800          No
Navios Koyo              Capesize      2011        181,415         Yes
Navios Obeliks           Capesize      2012        181,415         Yes



Owned Fleet to be Delivered

                                              Deadweight
  Vessels    Vessel Type   Delivery Date   (in metric tons)
----------   -----------   -------------   ----------------
Navios TBN     Panamax        Q4 2015           84,000
Navios TBN     Capesize       Q4 2015           180,600



Long-term Chartered-in Fleet to be Delivered

                    Vessel       Delivery      Deadweight       Purchase
   Vessels           Type          Date     (in metric tons)     Option
-------------   --------------   --------   ----------------   ---------
Navios Venus    Ultra Handymax    Q1 2015        61,000           Yes
Navios Felix       Capesize       Q2 2016        180,000          Yes
Navios Amber        Panamax       Q2 2015        80,000           Yes
Navios TBN          Panamax       Q3 2015        82,000           Yes
Navios TBN          Panamax       Q4 2016        81,000           Yes
Navios TBN          Panamax       Q4 2016        81,000           Yes
Navios TBN          Panamax       Q4 2016        84,000           Yes

(1) Generally, Navios Holdings may exercise its purchase option after three
    to five years of service.
(2) Navios Holdings holds the initial 50% purchase option on the vessel.

Contact:
Navios Maritime Holdings Inc.
+1.212.906.8643
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
With more than 30 Kubernetes solutions in the marketplace, it's tempting to think Kubernetes and the vendor ecosystem has solved the problem of operationalizing containers at scale or of automatically managing the elasticity of the underlying infrastructure that these solutions need to be truly scalable. Far from it. There are at least six major pain points that companies experience when they try to deploy and run Kubernetes in their complex environments. In this presentation, the speaker will d...
While DevOps most critically and famously fosters collaboration, communication, and integration through cultural change, culture is more of an output than an input. In order to actively drive cultural evolution, organizations must make substantial organizational and process changes, and adopt new technologies, to encourage a DevOps culture. Moderated by Andi Mann, panelists discussed how to balance these three pillars of DevOps, where to focus attention (and resources), where organizations might...
The deluge of IoT sensor data collected from connected devices and the powerful AI required to make that data actionable are giving rise to a hybrid ecosystem in which cloud, on-prem and edge processes become interweaved. Attendees will learn how emerging composable infrastructure solutions deliver the adaptive architecture needed to manage this new data reality. Machine learning algorithms can better anticipate data storms and automate resources to support surges, including fully scalable GPU-c...
When building large, cloud-based applications that operate at a high scale, it's important to maintain a high availability and resilience to failures. In order to do that, you must be tolerant of failures, even in light of failures in other areas of your application. "Fly two mistakes high" is an old adage in the radio control airplane hobby. It means, fly high enough so that if you make a mistake, you can continue flying with room to still make mistakes. In his session at 18th Cloud Expo, Le...
Machine learning has taken residence at our cities' cores and now we can finally have "smart cities." Cities are a collection of buildings made to provide the structure and safety necessary for people to function, create and survive. Buildings are a pool of ever-changing performance data from large automated systems such as heating and cooling to the people that live and work within them. Through machine learning, buildings can optimize performance, reduce costs, and improve occupant comfort by ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
CI/CD is conceptually straightforward, yet often technically intricate to implement since it requires time and opportunities to develop intimate understanding on not only DevOps processes and operations, but likely product integrations with multiple platforms. This session intends to bridge the gap by offering an intense learning experience while witnessing the processes and operations to build from zero to a simple, yet functional CI/CD pipeline integrated with Jenkins, Github, Docker and Azure...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
René Bostic is the Technical VP of the IBM Cloud Unit in North America. Enjoying her career with IBM during the modern millennial technological era, she is an expert in cloud computing, DevOps and emerging cloud technologies such as Blockchain. Her strengths and core competencies include a proven record of accomplishments in consensus building at all levels to assess, plan, and implement enterprise and cloud computing solutions. René is a member of the Society of Women Engineers (SWE) and a m...
Dhiraj Sehgal works in Delphix's product and solution organization. His focus has been DevOps, DataOps, private cloud and datacenters customers, technologies and products. He has wealth of experience in cloud focused and virtualized technologies ranging from compute, networking to storage. He has spoken at Cloud Expo for last 3 years now in New York and Santa Clara.
Enterprises are striving to become digital businesses for differentiated innovation and customer-centricity. Traditionally, they focused on digitizing processes and paper workflow. To be a disruptor and compete against new players, they need to gain insight into business data and innovate at scale. Cloud and cognitive technologies can help them leverage hidden data in SAP/ERP systems to fuel their businesses to accelerate digital transformation success.
Containers and Kubernetes allow for code portability across on-premise VMs, bare metal, or multiple cloud provider environments. Yet, despite this portability promise, developers may include configuration and application definitions that constrain or even eliminate application portability. In this session we'll describe best practices for "configuration as code" in a Kubernetes environment. We will demonstrate how a properly constructed containerized app can be deployed to both Amazon and Azure ...
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.