SOURCE: Navios Maritime Holdings, Inc.

Navios Maritime Holdings, Inc.

May 19, 2011 06:30 ET

Navios Maritime Holdings Inc. Reports Financial Results for the First Quarter Ended March 31, 2011

Dividend of $0.06 per Share for Q1 2011

Q1 Adjusted EBITDA Excluding Navios Acquisition of $67.5 Million

Q1 Adjusted Basic EPS Excluding Navios Acquisition of $0.19

PIRAEUS, GREECE--(Marketwire - May 19, 2011) - Navios Maritime Holdings Inc. ("Navios Holdings") (NYSE: NM), a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the quarter ended March 31, 2011.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Holdings, stated, "This quarter's results reflect our strategy of building a fortress like balance sheet. Total liquidity after the just-announced sale is expected to be in excess of $290 million. Our strong balance sheet should allow us the flexibility of executing on opportunities that may develop while weathering any prolonged downturn."

Ms. Frangou continued, "We focused our recent activity on the significant opportunities for Navios Logistics and Navios Acquisition. Navios Logistics has been transformed into one of the leading providers of integrated logistics in the Hidrovia Region. During this quarter, we raised $200 million of debt financing by issuing an unsecured bond due 2019 with interest at 9.25% per annum. The cost of funds is competitive regionally and offers us a continuing advantage. The actual funds will allow us to capitalize on numerous regional opportunities as we grow Navios Logistics. Navios Acquisition recently issued a $105 million secured bond due 2017 with effective interest at 8.00% per annum. The funds are financing the acquisition of the Shinyo Kieran, a newbuild VLCC expected by Navios Acquisition in June with a 15-year charter at $48,153 (net) per day plus profit sharing." 2011 HIGHLIGHTS -- RECENT DEVELOPMENTS

Navios Holdings

Vessel Sales

On May 19, 2011, Navios Holdings sold the Navios Luz, a 2010 built Capesize vessel of 179,144 deadweight tons ("dwt"), and the Navios Orbiter, a 2004 built Panamax vessel of 76,602 dwt, to Navios Maritime Partners L.P. ("Navios Partners") for a total of $130.0 million, of which $120.0 million is payable in cash and $10.0 million in newly issued common units of Navios Partners. A portion of the cash proceeds amounting to $57.7 million is used to fully repay the outstanding loan amounts associated with the vessels.

Deconsolidation of Navios Maritime Acquisition Corporation ("Navios Acquisition")

Navios Holdings exchanged 7.7 million shares of Navios Acquisition's common stock it held for non-voting preferred stock of Navios Acquisition pursuant to an Exchange Agreement entered into on March 30, 2011 between Navios Acquisition and Navios Holdings. Following this exchange, Navios Holdings has 45% of the voting power and 53.7% of the economic interest in Navios Acquisition. As a result, from March 30, 2011, Navios Acquisition is considered an affiliate entity and the investment in Navios Acquisition is accounted for under the equity method due to Navios Holdings' significant influence over Navios Acquisition.

Vessel Acquisition

On February 21, 2011, the Navios Astra, a 53,468 dwt Ultra-Handymax vessel and former long-term chartered-in vessel in operation, was delivered to Navios Holdings' owned fleet. The acquisition cost of the Navios Astra was approximately $22.8 million.

Liquidity

Net Debt to Total Capitalization (excluding Navios Acquisition) was 49% on March 31, 2011. Navios Holdings' total available liquidity, including bank lines, as of March 31, 2011 was approximately $229.3 million.

Time Charter Coverage

Navios Holdings has long-term fleet employment for periods up to 12 years. As of May 16, 2011, Navios Holdings had charter-out 91.2%, 58.0% and 39.0% of available days for 2011, 2012 and 2013, respectively, equivalent to $303.3 million, $216.7 million and $168.9 million in revenue, respectively. The average daily charter-out rate for the core fleet is $26,523, $29,017 and $32,402 for 2011, 2012 and 2013, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2011 is $10,741.

The above figures do not include the fleet of Navios South American Logistics Inc. ("Navios Logistics"), Navios Acquisition and vessels servicing Contracts of Affreightment ("COA").

Navios Logistics

$200.0 million 9.25% Senior Unsecured Notes Due 2019

On April 12, 2011, Navios Logistics completed the sale of $200.0 million of senior unsecured notes ("Logistics Senior Notes") due on April 15, 2019 at a fixed rate of 9.25%. The net proceeds from the Logistics Senior Notes were approximately $194.0 million, after deducting related fees and estimated expenses, and will be used to (i) purchase barges and pushboats, (ii) repay existing indebtedness, and (iii) to the extent available, for general corporate purposes.

Pushboat acquisition

On April 15, 2011, Navios Logistics used a portion of the proceeds of the Logistics Senior Notes, to pay $8.7 million for the acquisition of two pushboats named William Hank and Lonny Fugate and, on May 2, 2011, Navios Logistics used a portion of such proceeds to pay $0.6 million, representing a 10% deposit of the purchase price, for the acquisition of the pushboat WW Dyer.

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

On May 11, 2011, Navios Holdings received $6.2 million as a dividend distribution from Navios Partners.

On April 13, 2011, Navios Partners completed a public offering of 4,600,000 common units, which included the full exercise of the underwriters' over-allotment option, at $19.68 per unit, raising gross proceeds of approximately $90.5 million. Following the offering and the issuance of common units in connection with the sale of the Navios Luz and the Navios Orbiter, Navios Holdings' interest in Navios Partners is 27.1% (including the 2% GP interest).

Fleet Profile

Navios Holdings controls a fleet of 55 vessels totaling 5.8 million dwt, of which 28 are owned and 27 are chartered-in under long-term charters. Navios Holdings currently operates 42 vessels (17 Capesize, 9 Panamax and 16 Ultra-Handymax) totaling 4.6 million dwt and has 13 newbuilding charter-in vessels expected to be delivered at various dates through 2013 (the "Core Fleet"). The current average age of the operating fleet is 4.8 years.

Exhibit II provides certain details of the "Core Fleet" of Navios Holdings. It does not include the fleets of Navios Acquisition and Navios Logistics.

Dividend Policy

The Board of Directors declared a quarterly cash dividend for the first quarter of 2011 of $0.06 per share of common stock. The dividend is payable on July 7, 2011 to stockholders of record as of June 15, 2011. The declaration and payment of any further dividend 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.

Financial Highlights

--  Revenue, excluding revenue from Navios Acquisition, increased by
    1.5% to $156.6 million in the first quarter of 2011 from $154.4 million
    for the same period in 2010.

--  Adjusted EBITDA, excluding Navios Acquisition, increased by 17.0% to
    $67.5 million in the first quarter of 2011 from $57.7 million for the
    same period in 2010.

--  Net Debt to Total Capitalization (excluding Navios Acquisition) was
    49% on March 31, 2011.

First Quarter 2011 and 2010 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The quarterly 2011 and 2010 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-U.S. GAAP financial measures, and should not be used in isolation or substitution for Navios Holdings' results.

As discussed above, from March 30, 2011, Navios Acquisition is no longer consolidated and is accounted for under the equity method of accounting. The table below is presented to provide investors with a clearer picture of Navios Holdings on a going forward basis. Since Navios Acquisition had no operations during the three months ended March 31, 2010, the Total Consolidated column for the three months ended March 31, 2010 is not affected by Navios Acquisition.

                                   Navios         Total          Total
                                Acquisition   Consolidated   Consolidated
                                 operations     (Excluding     (Excluding
                    Total       and related       Navios         Navios
                Consolidated       items      Acquisition)   Acquisition)
                For the Three  For the Three  For the Three  For the Three
                Months Ended   Months Ended   Months Ended   Months Ended
                  March 31,      March 31,      March 31,      March 31,
                    2011           2011           2011           2010
                -------------  -------------  -------------  --------------
                 (unaudited)    (unaudited)    (unaudited)    (unaudited)

Revenue         $     181,772  $      25,130  $     156,642  $      154,369
EBITDA          $      25,930  $      14,938  $      10,992  $       78,050
Adjusted EBITDA
 (*)            $      82,454  $      14,938  $      67,516  $       57,689
Net (loss)/
 income         $     (38,145) $      (1,456) $     (36,689) $       31,301
Adjusted Net
 Income/(Loss)
  (*)           $      18,379  $      (1,456) $      19,835  $       10,940
(Loss)/Earnings
 Per Share      $       (0.38) $       (0.01) $       (0.37) $         0.31
Adjusted Basic
 Earnings/(Loss)
 Per Share (*)  $        0.18  $       (0.01) $        0.19  $         0.10

(*)  Each of Adjusted EBITDA, Adjusted Net Income and Adjusted Basic
     Earnings Per Share for the three months ended March 31, 2011, excludes
     $21.2 million of expenses relating to the bond extinguishment in
     January 2011 and $35.3 million loss on change in control from Navios
     Acquisition deconsolidation.

     Each of the Adjusted EBITDA, Adjusted Net Income and Adjusted Basic
     Earnings Per Share for the three months ended March 31, 2010 excludes
     (i) a $24.4 million gain on the sale of the Navios Hyperion and the
     Navios Aurora II to Navios Partners; and (ii) a $4.0 million write-off
     relating to the termination of an unfavorable short term charter
     contract.

Navios Holdings' total consolidated revenue for the three months ended March 31, 2011 increased by $27.4 million to $181.8 million compared to $154.4 million for the same period in 2010.

Revenue from drybulk vessel operations for the three months ended March 31, 2011 was $112.3 million as compared to $118.2 million for the same period during 2010. The decrease in drybulk revenue was mainly attributable to a decrease in short-term charter-in and long-term charter-in fleet available days by 174 days and 443 days, respectively. This decrease in drybulk revenue was partially offset by a slight increase in Time Charter Equivalent ("TCE") per day by 0.6% to $24,622 per day in the first quarter of 2011 from $24,484 per day in the same period of 2010 and an increase in available days for owned vessels by 19.2% to 2,524 days in the first quarter of 2011 from 2,118 days in the same period of 2010.

Revenue from the logistics business was $44.4 million for the three months ended March 31, 2011 as compared to $36.2 million during the same period of 2010. This increase was mainly attributable to: (i) the acquisition of the Sara H in February 2010; (ii) the delivery of the Jiujiang and the Stavroula in June and July 2010, respectively; and (iii) the expansion and increased operations of its dry port.

Revenue from tanker vessel operations for the three month period ended March 31, 2011 was $25.1 million. Following the delivery of a chemical tanker, the Nave Polaris, on January 27, 2011, Navios Acquisition had 874 available days and a TCE rate of $29,558. There were no operations in the corresponding period in 2010.

EBITDA of Navios Holdings (excluding Navios Acquisition) for the three months ended March 31, 2011 decreased by $67.1 million to $11.0 million compared to $78.1 million for the first quarter of 2010. EBITDA of Navios Holdings (excluding Navios Acquisition) for the three month periods ended March 31, 2011 was adjusted for (i) a $35.3 million loss on change in control from Navios Acquisition deconsolidation, and (ii) $21.2 million of expenses relating to the bond extinguishment in January 2011, and for the same period of 2010 was adjusted for (i) a $24.4 million gain on the sale of the Navios Hyperion and the Navios Aurora II to Navios Partners and (ii) a $4.0 million write-off relating to the termination of an unfavorable short term charter contract. As a result of these adjustments, the Adjusted EBITDA of Navios Holdings (excluding Navios Acquisition) for the three months ended March 31, 2011 increased by $9.8 million to $67.5 million compared to $57.7 million for the first quarter of 2010. The $9.8 million increase in Adjusted EBITDA was primarily due to: (i) an increase in revenue of $2.3 million to $156.7 million in the first quarter of 2011 from $154.4 million in the same period of 2010; (ii) a decrease in time charter, voyage and logistics business expenses of $17.8 million; (iii) a decrease in general and administrative expenses of $0.8 million (excluding share-based compensation expenses); and (iv) a $1.4 million decrease in losses from derivatives. The overall variance of $22.3 million was partially offset by: (i) an increase in direct vessel expenses (excluding the amortization of deferred dry dock and special survey costs) of $5.7 million; (ii) an increase of $2.4 million in loss attributable to the noncontrolling interest; (iii) a decrease in equity in earnings by $3.3 million; and (iv) an increase of $1.1 million in net other expense.

EBITDA of Navios Logistics was $9.5 million for the three month period ended March 31, 2011 as compared to $4.1 million during the same period in 2010.

EBITDA of Navios Acquisition for the three month period ended March 31, 2011 was $14.9 million. There were no operations in the corresponding period in 2010.

See Exhibit I under the heading "Disclosure of Non-GAAP Financial Measures" for a discussion of EBITDA and Adjusted EBITDA of Navios Holdings, on a consolidated basis, Navios Acquisition and Navios Logistics, and a reconciliation of such measures to the most comparable measure under U.S. GAAP.

Net loss of Navios Holdings (excluding Navios Acquisition) for the three months ended March 31, 2011 was $36.7 million as compared to $31.3 million income for the same period of 2010. Net loss of Navios Holdings (excluding Navios Acquisition) for the three months ended March 31, 2011 was adjusted for (i) $21.2 million of expenses relating to the bond extinguishment in January 2011; and (ii) a $35.3 million loss on change in control from Navios Acquisition deconsolidation, and for the same period of 2010, was adjusted for (i) a $24.4 million gain on the sale of the Navios Hyperion and the Navios Aurora II to Navios Partners and (ii) a $4.0 million write-off relating to the termination of an unfavorable short-term charter contract. As a result of these adjustments, the Adjusted Net Income of Navios Holdings (excluding Navios Acquisition) for the three months ended March 31, 2011 was $19.8 million as compared to $10.9 million for the same period of 2010. The increase of Adjusted Net Income by $8.9 million was mainly due to (i) an increase in Adjusted EBITDA of $9.8 million as discussed above; (ii) a decrease in interest expense, net of $0.3 million, and (iii) a decrease in income taxes of $0.1 million. This increase of Adjusted Net Income by $10.2 million was partially offset by (i) an increase in depreciation and amortization of $0.3 million; (ii) an increase of $0.6 million in amortization for drydock and special survey costs; and (iii) an increase of $0.4 million in share-based compensation expense.

Net loss of Navios Acquisition for the three month period ended March 31, 2011 was $1.5 million. There were no operations in the corresponding period in 2010.

Fleet Summary Data:

The following table reflects certain key indicators indicative of the performance of the Navios Holdings' drybulk operations and its fleet performance for the three month periods ended March 31, 2011 and 2010.

                                           Three Month       Three Month
                                           Period ended      Period ended
                                         March 31, 2011    March 31, 2010
                                         ---------------   ---------------
                                           (Unaudited)       (Unaudited)
Available Days (1)                                 3,982             4,194
Operating Days  (2)                                3,932             4,178
Fleet Utilization  (3)                              98.7%             99.6%
Equivalent Vessels (4)                                45                47
TCE (5)                                  $        24,622   $        24,484

(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, May 19, 2011, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on the financial results of the first quarter ended March 31, 2011.

A supplemental slide presentation will be available on the Navios Holdings website at www.navios.com under the "Investors" section at 7:45 am ET.

Conference Call details:
Call Date/Time: May 19, 2011, at 8:30 am ET
Call Title: Navios Holdings Q1 2011 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 5989 5525

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: +1.800.642.1687
International Replay Dial In: +1.706.645.9291
Conference ID: 5989 5525

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

About Navios Maritime Holdings Inc.

Navios Maritime Holdings Inc. (NYSE: NM) is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain.

For more information about Navios Holdings please visit our website: www.navios.com.

About Navios South American Logistics Inc.

Navios Logistics is one of the largest logistics companies in the Hidrovia region of South America, serving the storage and marine transportation needs of a diverse customer base of global petroleum, agricultural and mining companies. Through port terminal, river barge and coastal cabotage operations, the company is focused on providing its customers integrated transportation, storage and related services. 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 BALANCE SHEETS
       (Expressed in thousands of U.S. dollars - except share data)

                                                   March 31,   December 31,
                                                      2011         2010
                                                  (unaudited)
                                                  ------------ ------------
ASSETS
Current assets
Cash and cash equivalents                         $    180,160 $    207,410
Restricted cash                                         19,173       34,790
Accounts receivable, net                                71,703       70,388
Short-term derivative asset                              1,307        1,420
Due from affiliate companies                            15,327        2,603
Prepaid expenses and other current assets               29,515       33,354
                                                  ------------ ------------
Total current assets                                   317,185      349,965
                                                  ------------ ------------

Deposits for vessel acquisitions                            --      377,524
Vessels, port terminal and other fixed assets, net   1,835,762    2,249,677
Long-term derivative assets                                 --          149
Restricted cash                                             --       18,787
Other long-term assets                                  58,869       60,132
Long-term asset due from affiliate                      12,391           --
Investments in affiliates                              120,643       18,695
Investments in available for sale securities           103,561       99,078
Intangible assets other than goodwill                  261,204      327,703
Goodwill                                               160,336      175,057
                                                  ------------ ------------
Total non-current assets                             2,552,766    3,326,802
                                                  ------------ ------------
Total assets                                      $  2,869,951 $  3,676,767
                                                  ============ ============

LIABILITIES AND EQUITY
Current liabilities
Accounts payable                                  $     41,972 $     49,496
Dividends payable                                        6,100        7,214
Accrued expenses                                        69,951       62,417
Deferred income and cash received in advance            22,458       17,682
Short-term derivative liability                            241          245
Current portion of capital lease obligations             1,267        1,252
Current portion of long-term debt                       63,407       63,297
                                                  ------------ ------------
Total current liabilities                              205,396      201,603
                                                  ------------ ------------

Senior and ship mortgage notes, net of discount        745,122    1,093,787
Long-term debt, net of current portion                 625,950      918,826
Capital lease obligations, net of current portion       30,692       31,009
Unfavorable lease terms                                 49,552       56,875
Long-term derivative liability                             118           --
Other long-term liabilities and deferred income         39,480       36,020
Deferred tax liability                                  19,944       21,104
                                                  ------------ ------------
Total non-current liabilities                        1,510,858    2,157,621
                                                  ------------ ------------
Total liabilities                                    1,716,254    2,359,224
                                                  ------------ ------------

Commitments and contingencies                               --           --
Stockholders' equity
Preferred stock -- $0.0001 par value, authorized
 1,000,000 shares, 8,479 and 8,479 issued and
 outstanding as of March 31, 2011 and December 31,
 2010, respectively.                                        --           --
Common stock -- $0.0001 par value, authorized
 250,000,000 shares, issued and outstanding
 101,671,343 and 101,563,766 as of March 31, 2011
 and December 31, 2010, respectively.                       10           10
Additional paid-in capital                             532,643      531,265
Accumulated other comprehensive income                  37,107       32,624
Retained earnings                                      451,021      495,684
                                                  ------------ ------------
Total Navios Holdings' stockholders' equity          1,020,781    1,059,583
Noncontrolling interest                                132,916      257,960
                                                  ------------ ------------
Total stockholders' equity                           1,153,697    1,317,543
                                                  ------------ ------------
Total liabilities and stockholders' equity        $  2,869,951 $  3,676,767
                                                  ============ ============





                      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
                                                    Period       Period
                                                     ended        ended
                                                   March 31,    March 31,
                                                      2011         2010
                                                  (unaudited)  (unaudited)
                                                  -----------  -----------
Revenue                                           $   181,772  $   154,369
Time charter, voyage and logistics business
 expenses                                             (59,114)     (76,501)
Direct vessel expenses                                (34,018)     (20,044)
General and administrative expenses                   (12,774)     (12,193)
Depreciation and amortization                         (33,321)     (24,941)
Interest income/expense and finance cost, net         (29,437)     (21,409)
Loss from derivatives                                    (385)      (1,838)
Gain on sale of assets                                     --       24,383
Loss on change in control                             (35,325)          --
Loss on bond extinguishment                           (21,199)          --
Other expense, net                                       (975)      (3,799)
                                                  -----------  -----------
(Loss)/income before equity in net earnings of
 affiliate companies                                  (44,776)      18,027
Equity in net earnings of affiliated companies          7,015       11,584
                                                  -----------  -----------

(Loss)/income before taxes                        $   (37,761) $    29,611
Income taxes                                              904          768
                                                  -----------  -----------

Net (loss)/income                                     (36,857)      30,379
Less: Net loss/(income) attributable to the
 noncontrolling interest                               (1,273)         922
Add: Preferred stock dividends attributable to
 the noncontrolling interest                               12           --
Less: Preferred stock dividends of subsidiary             (27)          --
                                                  -----------  -----------

Net (loss)/income attributable to Navios Holdings
 common stockholders                              $   (38,145) $    31,301
                                                  ===========  ===========

Basic (loss)/earnings per share attributable to
 Navios Holdings common stockholders              $     (0.38) $      0.31
                                                  ===========  ===========

Weighted average number of shares, basic          100,852,517  100,425,549
                                                  ===========  ===========

Diluted (loss)/earnings per share attributable to
 Navios Holdings common stockholders              $     (0.38) $      0.27
                                                  ===========  ===========

Weighted average number of shares, diluted        100,852,517  114,076,034
                                                  ===========  ===========




                      NAVIOS MARITIME HOLDINGS INC.
             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                 (Expressed in thousands of U.S. dollars)

                                                      Three       Three
                                                      Month       Month
                                                      Period      Period
                                                      ended       ended
                                                    March 31,   March 31,
                                                       2011        2010
                                                   (unaudited)  (unaudited)
                                                    ----------  ----------
  OPERATING ACTIVITIES:
  Net (loss)/income                                 $  (36,857) $   30,379
    Adjustments to reconcile net (loss)/income to
     net cash provided by operating activities:
    Non cash adjustments                                78,318      11,073
    Increase in operating assets                       (11,026)    (10,819)
    Increase/(decrease) in operating liabilities        28,374      (4,938)
    Payments for drydock and special survey costs       (3,876)     (1,663)
                                                    ----------  ----------
  Net cash provided by operating activities             54,933      24,032
                                                    ----------  ----------

  INVESTING ACTIVITIES:
    Acquisition of vessels                             (56,059)         --
    Decrease in cash balance from Navios Acquisition
     on date of deconsolidation                        (72,425)         --
    Proceeds from sale of assets                            --     153,000
    Decrease/(increase) in restricted cash for
     investing activities                                  778     (26,641)
    Deposits for vessel acquisitions                    (2,995)    (64,736)
    Receipts from finance lease                             --         142
    Purchase of property and equipment                  (2,865)     (3,029)
                                                    ----------  ----------

    Net cash (used in)/provided by investing
     activities                                       (133,566)     58,736
                                                    ----------  ----------

  FINANCING ACTIVITIES:
    Proceeds from long-term loan, net of deferred
     finance fees                                       35,747      41,428
    Repayment of long-term debt                       (317,245)    (78,581)
    Proceeds from issuance of Senior Notes, net of
     deferred finance fees                             340,981          --
    Dividends paid                                      (7,659)     (7,034)
    Dividends to noncontrolling shareholders                --        (469)
    Issuance of common stock                               368          --
    Payments of obligations under capital leases          (302)         --
    Increase in restricted cash                           (507)     (1,125)
                                                    ----------  ----------

  Net cash provided by/(used in) financing
   activities                                           51,383     (45,781)
                                                    ----------  ----------

  (Decrease)/increase in cash and cash equivalents     (27,250)     36,987
                                                    ----------  ----------

  Cash and cash equivalents, beginning of period       207,410     173,933
                                                    ----------  ----------

  Cash and cash equivalents, end of period          $  180,160  $  210,920
                                                    ==========  ==========


  SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
    Cash paid for interest                          $   11,457  $    8,453
    Cash paid for income taxes                      $       --  $      359
                                                    ==========  ==========

  Non-cash investing and financing activities
    Equity in net earnings of affiliated companies  $    7,015  $   11,584

Disclosure of Non-GAAP Financial Measures

EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, unless otherwise stated. Adjusted EBITDA represents EBITDA excluding events as described under "Financial Results." EBITDA and Adjusted EBITDA are included because they are used by certain investors to measure a company's financial performance. EBITDA and Adjusted EBITDA are "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 accounting principles generally accepted 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, Navios Acquisition and Navios Logistics, to satisfy its obligations including debt service, capital expenditures, working capital requirements and payment of dividends. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

The following tables provide a reconciliation of EBITDA, in the case of Navios Holdings on a consolidated basis, Navios Acquisition and Navios Logistics, and Adjusted EBITDA in the case of Navios Holdings on a consolidated basis (as defined in the notes to the tables):

Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from
Operations

Three Months Ended
(in thousands of U.S. dollars)                      March 31,    March 31,
                                                       2011        2010
                                                   (unaudited) (unaudited)
                                                    ----------  ----------
Net cash provided by operating activities           $   54,933  $   24,032
Net increase in operating assets                        11,026      10,819
Net (increase)/decrease in operating liabilities       (28,374)      4,938
Net interest cost                                       29,437      21,409
Deferred finance charges                                (1,331)     (1,614)
Provision for gains/(losses) on accounts receivable        115      (4,066)
Unrealized loss on FFA derivatives, warrants and
 interest rate swaps and expenses related to bond
 extinguishment                                         (5,836)     (5,530)
Earnings in affiliates, net of dividends received       (1,303)      1,094
Payments for drydock and special survey                  3,876       1,663
Noncontrolling interest                                 (1,273)        922
Preferred stock dividends attributable to the
 noncontrolling interest                                    12          --
Preferred stock dividends of subsidiary                    (27)         --
Loss on change in control                              (35,325)         --
Gain on sale of assets                                      --      24,383
                                                    ----------  ----------
EBITDA                                              $   25,930  $   78,050
Gain on sale of assets                                      --     (24,383)
Expenses from bond extinguishment                       21,199          --
Write-off due of unfavourable short term charter
 contract                                                   --       4,022
Loss on change in control                               35,325          --
                                                    ----------  ----------
Adjusted EBITDA                                     $   82,454  $   57,689
                                                    ==========  ==========


Navios Acquisition Reconciliation of EBITDA to Cash from Operations

Three Months Ended
(in thousands of U.S. dollars)                      March 31,    March 31,
                                                       2011        2010
                                                   (unaudited)  (unaudited)
                                                    ----------  -----------
Net cash provided by operating activities           $   18,749  $        --
Net increase in operating assets                        (4,117)          --
Net decrease in operating liabilities                   (6,613)          --
Net interest cost                                        8,349           --
Deferred finance charges                                  (318)          --
Earnings in affiliates, net of dividends received       (1,300)          --
Noncontrolling interest                                    188           --
                                                    ----------  -----------
EBITDA                                              $   14,938  $        --



Navios Logistics EBITDA Reconciliation to Net Income

                                                    ----------------------
Three Months Ended                                  March 31,    March 31,
(in thousands of U.S. dollars)                         2011        2010
                                                    ----------  ----------
                                                    (unaudited) (unaudited)

 Net income attributable to Navios Logistics
  shareholders                                      $    3,229  $   (1,780)
 Depreciation and amortization                           6,116       5,708
 Amortization of deferred drydock costs                    111          79
 Interest income/expense and finance cost, net           1,054         908
 Income taxes                                             (977)       (842)
                                                    ----------  ----------
 EBITDA                                             $    9,533  $    4,073
                                                    ==========  ==========




                                                                 EXHIBIT II

Owned Vessels


                                                    Year
Vessel Name                         Vessel Type     Built     Deadweight
                                  ---------------- ------- ----------------
                                                           (in metric tons)
Navios Ionian                       Ultra Handymax    2000           52,067
Navios Vector                       Ultra Handymax    2002           50,296
Navios Horizon                      Ultra Handymax    2001           50,346
Navios Herakles                     Ultra Handymax    2001           52,061
Navios Achilles                     Ultra Handymax    2001           52,063
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 Ulysses                      Ultra Handymax    2007           55,728
Navios Vega                         Ultra Handymax    2009           58,792
Navios Celestial                    Ultra Handymax    2009           58,063
Navios Astra                        Ultra Handymax    2006           53,468
Navios Magellan                            Panamax    2000           74,333
Navios Star                                Panamax    2002           76,662
Navios Asteriks                            Panamax    2005           76,801
Navios Bonavis                            Capesize    2009          180,022
Navios Happiness                          Capesize    2009          180,022
Navios Lumen                              Capesize    2009          180,661
Navios Stellar                            Capesize    2009          169,001
Navios Phoenix                            Capesize    2009          180,242
Navios Antares                            Capesize    2010          169,059
Navios Buena Ventura                      Capesize    2010          179,132
Navios Etoile                             Capesize    2010          179,234
Navios Bonheur                            Capesize    2010          179,259
Navios Altamira                           Capesize    2011          179,165
Navios Azimuth                            Capesize    2011          179,169



Long Term Chartered-in Fleet in Operation


                                                     Deadweight
                                             Year    (in metric   Purchase
Vessel Name                   Vessel Type    Built      tons)     Option(1)
                             -------------- ------- ------------ ----------

Navios Primavera             Ultra Handymax    2007       53,464        Yes
Navios Armonia               Ultra Handymax    2008       55,100         No
Navios Orion                        Panamax    2005       76,602         No
Navios Titan                        Panamax    2005       82,936         No
Navios Altair                       Panamax    2006       83,001         No
Navios Esperanza                    Panamax    2007       75,200         No
Torm Antwerp                        Panamax    2008       75,250         No
Golden Heiwa                        Panamax    2007       76,662         No
King Ore                           Capesize    2010      176,800         No
Beaufiks                           Capesize    2004      180,181        Yes
Phoenix Beauty                     Capesize    2010      169,150         No
Rubena N                           Capesize    2006      203,233         No
Formosabulk Brave                  Capesize    2001      170,000         No
SC Lotta                           Capesize    2009      170,500         No



Long Term Chartered-in Fleet to be Delivered

                                                                Deadweight
                                       Delivery   Purchase      (in metric
Vessels                  Vessel Type     Date      Option          tons)
                        -------------- ---------- --------     ------------
 Navios Serenity             Handysize    05/2011      Yes(2)        34,718
 Navios TBN                  Handysize    09/2012      Yes(2)        34,718
 Navios Koyo                  Capesize    12/2011      Yes          181,000
 Kleimar TBN                  Capesize    07/2012      Yes          180,000
 Navios TBN                   Capesize    12/2013      Yes          180,000
 Navios TBN             Ultra Handymax    04/2012      Yes           61,000
 Navios TBN             Ultra Handymax    05/2013      Yes           61,000
 Navios TBN             Ultra Handymax    10/2013      Yes           61,000
 Navios Marco Polo             Panamax    09/2011      Yes           80,000
 Navios TBN                    Panamax    01/2013      Yes           82,100
 Navios TBN                    Panamax    07/2013      Yes(2)        80,500
 Navios TBN                    Panamax    09/2013      Yes(2)        80,500
 Navios TBN                    Panamax    11/2013      Yes(2)        80,500


(1) Generally, Navios Holdings may exercise its purchase option after three
    to five years of service.
(2) The initial 50% purchase option on each vessel is held by Navios
    Holdings.

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