SOURCE: Navios Maritime Holdings Inc.

Navios Maritime Holdings Inc.

November 25, 2013 07:43 ET

Navios Maritime Holdings Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2013

MONACO--(Marketwired - Nov 25, 2013) - Navios Maritime Holdings Inc. (NYSE: NM)

  • Revenue:
    • $122.3 million for Q3,
    • $381.7 million for nine months

  • EBITDA:
    • $ 40.6 million for Q3,
    • $117.8 million for nine months
       
  • Delivery of five Panamax vessels

  • Issued $650.0 million 7 3/8% First Priority Ship Mortgage Notes
    • Lowered coupon by 150bps
    • Extended maturity to 2022 from 2017

  • Navios Logistics signs 20-year agreement with Vale International S.A.
    • $35.0 million estimated minimum annual EBITDA
    • $ 1.0 billion estimated minimum 20-year aggregate EBITDA

  • Declared quarterly dividend of $0.06 per share for Q3 2013

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 third quarter and nine months ended September 30, 2013.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, "We are pleased to report our results for the third quarter of 2013. We had a solid quarter and reported $40.6 million of EBITDA. We continued our operating discipline. Through a number of initiatives, we materially reduced our daily operating expense to $3,631 and daily cash breakeven to $8,590 per vessel for 2014. As we focus on execution, we are returning capital to our shareholders through dividend payments and declared a $0.06 dividend for Q3 2013 representing a yield of 3.1%."

Angeliki Frangou continued, "When the rate and charter period markets were robust, we entered into long-term charters-out, generating stable cash flow that allowed us the latitude to position ourselves for a difficult market. This also developed continued access to the capital markets. Today, the Navios Group's access to the capital markets is a competitive advantage. So far in 2013, we have raised over $2.3 billion and agreed to acquire 44 vessels at attractive prices."

HIGHLIGHTS -- RECENT DEVELOPMENTS

Navios Holdings

Issuance of $650.0 million of First Priority Ship Mortgage Notes due 2022 and Tender Offer for Any and All Outstanding Ship Mortgage Notes due 2017

On November 14, 2013, Navios Holdings and Navios Maritime Finance II (US) Inc. (the "Co-Issuers") priced an offering of $650.0 million of 7 3/8% First Priority Ship Mortgage Notes due 2022 (the "2022 Notes"). The 2022 Notes will be secured by first priority ship mortgages on 23 vessels, aggregating approximately 2.2 million deadweight tons owned by certain subsidiary guarantors and certain other associated property and contract rights. The 2022 Notes will be guaranteed by all of the Company's subsidiaries that guarantee the Co-Issuer's 8 1/8% Senior Notes due 2019. The 2022 Notes offering is expected to close on November 29, 2013.

On November 14, 2013, Navios Holdings and Navios Maritime Finance (US) Inc. commenced a cash tender offer (the "Tender Offer") for any and all of their outstanding 8 7/8% First Priority Ship Mortgage Notes due 2017 (the "2017 Notes") and a consent solicitation to eliminate or modify most of the restrictive covenants and certain events of default. The Tender Offer and consent solicitation are scheduled to expire on December 12, 2013. We currently intend to discharge and redeem any 2017 Notes that are not purchased in the Tender Offer.

Vessel Deliveries

During the third quarter of 2013, four Panamax vessels were delivered to Navios Holdings' owned fleet, comprised of the Navios Galileo, the Navios Amitie, the Navios Taurus and the Navios Northern Star. The total vessel acquisition price was $67.8 million, of which $40.0 million was financed through a facility agreement with DVB Bank S.E. and the balance with available cash.

Dividend Policy

On November 15, 2013, the Board of Directors declared a quarterly cash dividend for the third quarter of 2013 of $0.06 per share of common stock. The dividend is payable on December 20, 2013 to stockholders of record as of December 12, 2013. The declaration and payment of any further dividends remain subject to the discretion of the Board and will depend on, among other things, Navios Holdings' cash requirements after taking into account market opportunities, restrictions under its credit agreements and other debt obligations and such other factors as the Board may deem advisable.

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

Storage and Transshipment Agreement

In November 2013, Navios Logistics announced that it has signed a 20-year agreement with Vale International S.A. ("Vale"), a subsidiary of Vale S.A., to provide storage and transshipment services. The agreement with Vale provides for storing and transshipping five million tons annually of iron ore, plus an option to Vale for an additional one million tons or a total of six million tons, with a guarantee that Vale will use a minimum of four million tons. The agreement provides for fixed tariffs per ton, paid in US dollars, with annual adjustments for inflation and currency fluctuations.

  • Navios Logistics would expect to generate approximately $35.0 million of annual EBITDA, and $1.0 billion of aggregate EBITDA over the 20-year term, assuming operating costs similar to the operating costs of Navios Logistics' existing dry port terminal.
  • If Navios Logistics uses the facility for initial maximum capacity, Navios Logistics would expect to generate approximately $50.0 million of annual EBITDA and $1.5 billion of aggregate EBITDA over the 20-year term, assuming operating costs similar to the operating costs of Navios Logistics' existing dry port terminal.

Navios Logistics will provide storage and transshipment services by expanding its existing terminal infrastructure and investing approximately $150.0 million. Upon completion of the expansion of the storage and transshipment facility, the facility will have six million tons of throughput capacity with potential to increase to ten million tons. The facility could generate additional EBITDA if the facility were expanded to its ten million ton maximum design capacity. Navios Logistics may cancel the agreement without any liability for a number of reasons during the initial two-year period.

Six-year Time Charter contracts for four convoys

Navios Logistics entered into six year time charter contracts for four convoys at $14,500 per day per convoy, with an investment grade counterparty. These contracts will be serviced using newbuilt barges currently under construction. Navios Logistics estimates that it will generate approximately $13.2 million annual EBITDA from these contracts.

Dividends from affiliates

On November 13, 2013, Navios Holdings received $7.4 million from Navios Maritime Partners L.P. ("Navios Partners") representing the cash distribution for the third quarter of 2013.

On October 4, 2013, Navios Holdings received $3.7 million from Navios Maritime Acquisition Corporation ("Navios Acquisition") representing the cash dividend for the second quarter of 2013.

Navios Asia LLC ("Navios Asia")

In October 2013, the N Amalthia, a 2006-built 75,318 dwt vessel, was delivered to the Navios Asia owned fleet for an acquisition price of approximately $17.8 million.

Time Charter Coverage

As of November 14, 2013, Navios Holdings has chartered-out 98.0% and 29.2% of available days for 2013 and 2014, respectively, equivalent to $168.1 million and $73.8 million in revenue, respectively. The average daily charter-out rate for the core fleet is $11,343 and $15,376 for 2013 and 2014, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2013 is $13,357.

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

Fleet Profile

Navios Holdings controls a fleet of 60 vessels totaling 5.8 million dwt, of which 40 are owned and 20 are chartered-in under long-term charters (collectively, the "Core Fleet"). Navios Holdings currently operates 53 vessels (16 Capesize, 16 Panamax, 19 Ultra Handymax and two Handysize) totaling 5.2 million dwt. The current average age of the operating fleet is 6.6 years. Additionally, Navios Holdings has (i) two newbuilding charter-in vessels expected to be delivered at various dates through April 2016; and (ii) in the Navios Asia fleet, one vessel expected to be delivered in the first quarter of 2014 and four vessels expected to be delivered in the first quarter of 2015.

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

Financial Highlights

As of September 30, 2013

  • Net Debt to Total Capitalization of 47.6%.
  • Cash $219.8 million.

Third Quarter 2013 and 2012 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The third quarter 2013 and 2012 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA is a non-U.S. GAAP financial measure and should not be used in isolation or as substitution for Navios Holdings' results.

See Exhibit I under the heading, "Disclosure of Non-GAAP Financial Measures," for a discussion of 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 Period     Three Month Period
    Ended     Ended
    September 30,     September 30,
    2013     2012
    (unaudited)     (unaudited)
Revenue   $ 122,284     $ 163,944
EBITDA   $ 40,570     $ 60,765
Net (Loss)/Income   $ (13,048 )   $ 4,630
Basic (Losses)/Earnings Per Share   $ (0.13 )   $ 0.04
               
               

Revenue from drybulk vessel operations for the three months ended September 30, 2013 was $72.5 million as compared to $98.9 million for the same period during 2012. The decrease in drybulk revenue was mainly attributable to a decrease in the time charter equivalent rate ("TCE") per day by 35.7% to $12,085 per day in the third quarter of 2013 following the receipt in advance of $175.4 million due to restructuring of credit default insurance, as compared to $18,785 per day in the same period of 2012; and (ii) a decrease in the long-term charter-in fleet available days of 211 days. This decrease was partially offset by an increase in short-term charter-in fleet available days of 563 days and an increase in available days for owned vessels of 92 days.

Revenue from the logistics business was $49.8 million for the three months ended September 30, 2013 as compared to $65.0 million for the same period of 2012. This decrease was mainly attributable to a decrease in the Paraguayan liquid port's volume of products sold.

EBITDA of Navios Holdings for the three months ended September 30, 2013 decreased by $20.2 million to $40.6 million as compared to $60.8 million for the same period of 2012. The $20.2 million decrease in EBITDA was primarily due to a $41.7 million decrease in revenue, which was mitigated by: (i) a decrease in general and administrative expenses of $1.4 million (excluding share-based compensation expenses); (ii) a $13.1 million decrease in time charter, voyage and logistics business expenses; (iii) a $2.0 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iv) a $1.0 million decrease in other expense, net; (v) a $0.1 million decrease in losses on derivatives; (vi) a $0.7 million decrease in net income attributable to the noncontrolling interest; and (vii) a $3.2 million increase in equity in net earnings from affiliated companies.

EBITDA of Navios Logistics was $10.8 million for the three month period ended September 30, 2013 as compared to $13.2 million for the same period in 2012.

Net loss of Navios Holdings for the three months ended September 30, 2013 was $13.1 million as compared to $4.6 million of income for the same period of 2012. The $17.7 million decrease of Net (Loss)/Income was mainly due to: (i) a decrease in EBITDA of $20.2 million; (ii) an increase in interest income/(expense) and finance cost, net of $0.5 million; and (iii) an increase of $0.8 million in amortization for deferred drydock and special survey costs. The decrease was partially offset by: (i) a decrease in depreciation and amortization of $2.2 million; (ii) an increase in income tax benefit of $1.1 million; and (iii) a decrease of $0.5 million in share-based compensation expense.

Nine Months Ended September 2013 and 2012 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The information for the nine month periods ended September 30, 2013 and 2012 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods. EBITDA is a non-U.S. GAAP financial measure, and should not be used in isolation or as substitution for Navios Holdings' results.

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, and Navios Logistics, and a reconciliation of such measures to the most comparable measures under U.S. GAAP.

           
           
           
    Nine Month Period     Nine Month Period
    Ended     Ended
    September 30,     September 30,
    2013     2012
    (unaudited)     (unaudited)
Revenue   $ 381,693     $ 488,037
EBITDA   $ 117,844     $ 184,424
Net (Loss)/Income   $ (39,084 )   $ 19,374
Basic (Losses)/Earnings Per Share   $ (0.40 )   $ 0.18
  Revenue from drybulk vessel operations for the nine months ended September 30, 2013 was $195.2 million as compared to $299.6 million for the same period during 2012. The decrease in drybulk revenue was mainly attributable to: (i) a decrease in the TCE per day by 42.2% to $11,543 per day in the nine month period ended September 30, 2013 following the receipt in advance of $175.4 million due to restructuring of credit default insurance in the fourth quarter of 2012, as compared to $19,988 per day in the same period of 2012; and (ii) a decrease in the long-term charter-in fleet available days of 303 days. This decrease was partially offset by an increase in short-term charter-in fleet available days of 942 days and an increase in available days for owned vessels of 216 days.
 
  Revenue from the logistics business was $186.5 million for the nine months ended September 30, 2013 as compared to $188.4 million for the same period of 2012.  This decrease was mainly attributable to a decrease in the Paraguayan liquid port's volume of products sold. This decrease was partially offset by an increase in (i) rates in the dry port terminal; and (ii) rates in the cabotage fleet.
 
  EBITDA of Navios Holdings for the nine months ended September 30, 2013 decreased by $66.6 million to $117.8 million as compared to $184.4 million for the same period of 2012. The $66.6 million decrease in EBITDA was primarily due to: (i) a $106.3 million decrease in revenue; (ii) a $3.2 million increase in net income attributable to the noncontrolling interest; and (iii) a $0.3 million decrease in gain from sale of assets. The overall variance of $109.8 million was mitigated by: (i) a decrease in general and administrative expenses of $6.6 million (excluding share-based compensation expenses); (ii) a $7.4 million decrease in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $12.0 million decrease in other expense, net; (iv) a $4.8 million increase in equity in net earnings from affiliated companies; and (v) a $12.4 million decrease in time charter, voyage and logistics business expenses.
   
  EBITDA of Navios Logistics was $42.5 million for the nine month period ended September 30, 2013 as compared to $37.2 million for the same period in 2012.
   
  Net loss of Navios Holdings for the nine month ended September 30, 2013 was $39.1 million as compared to $19.4 million of income for the same period of 2012. The decrease of net income by $58.5 million was mainly due to: (i) a decrease in EBITDA of $66.6 million; (ii) an increase in interest income/(expense) and finance cost, net of $2.7 million; and (iii) an increase of $1.4 million in amortization for deferred drydock and special survey costs. The decrease was partially offset by: (i) a decrease in depreciation and amortization of $5.3 million; (ii) an increase in income tax benefit of $5.3 million; and (iii) a decrease of $1.6 million in share-based compensation expense.

Fleet Summary Data:
The following table reflects certain key indicators indicative of the performance of the Navios Holdings' drybulk operations (excluding the Navios Logistics fleet) and its fleet performance for the three and nine month periods ended September 30, 2013 and 2012 and for the first and second quarter of 2013.

                                   
                                   
                                   
  Three Month Period Ended March 31, 2013     Three Month Period Ended June 30, 2013     Three Month Period Ended September 30, 2013     Three Month Period Ended September 30, 2012     Nine Month Period Ended September 30, 2013     Nine Month Period Ended September 30, 2012  
(Unaudited) (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)        
                                               
                                               
Available Days (1)   4,330       4,586       5,077       4,633       13,975       13,120  
Operating Days (2)   4,226       4,449       5,056       4,495       13,702       12,894  
Fleet Utilization (3)   97.60 %     97.00 %     99.60 %     97.00 %     98.10 %     98.30 %
Equivalent Vessels (4)   48       50       55       50       51       48  
TCE (5) $ 11,820     $ 10,600     $ 12,085     $ 18,785     $ 11,543     $ 19,988  
(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, November 25, 2013, 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 third quarter and nine months ended September 30, 2013.

A supplemental slide presentation will be available on the Navios Holdings website at www.navios.com under the "Investors" section by 8:00 am ET on the day of the call.

Conference Call details:
Call Date/Time: Monday, November 25, 2013, at 8:30 am ET
Call Title: Navios Holdings Inc. Q3 2013 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 6832 6328

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: 6832 6328

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 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 drybulk vessels; competitive factors in the market in which Navios Holdings operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Holdings' filings with the Securities and Exchange Commission. Navios Holdings expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Holdings' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.

 
 
 
 EXHIBIT I
 
NAVIOS MARITIME HOLDINGS INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of U.S. dollars -- except share and per share data)
 
                         
    Three Month     Three Month     Nine Month     Nine Month  
    Period Ended     Period Ended     Period Ended     Period Ended  
    September 30, 2013     September 30, 2012     September 30, 2013     September 30, 2012  
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Revenue   $ 122,284     $ 163,944     $ 381,693     $ 488,037  
Time charter, voyage and logistics business expenses     (55,455 )     (68,573 )     (191,095 )     (203,505 )
Direct vessel expenses     (31,392 )     (32,573 )     (85,531 )     (91,623 )
General and administrative expenses     (9,137 )     (11,066 )     (27,972 )     (36,092 )
Depreciation and amortization     (24,410 )     (26,568 )     (72,966 )     (78,274 )
Interest income/(expense) and finance cost, net     (27,415 )     (26,952 )     (80,145 )     (77,498 )
Loss on derivatives     --       (73 )     (260 )     (275 )
Gain on sale of assets     --       --       18       323  
Other (expense)/income, net     (806 )     (1,813 )     5,928       (6,034 )
Loss before equity in net earnings of affiliated companies     (26,331 )     (3,674 )     (70,330 )     (4,941 )
Equity in net earnings of affiliated companies     11,530       8,326       29,780       24,959  
(Loss)/income before taxes   $ (14,801 )   $ 4,652     $ (40,550 )   $ 20,018  
Income tax benefit/(expense)     1,407       314       4,979       (281 )
Net (loss)/income     (13,394 )     4,966       (35,571 )     19,737  
Less: Net loss/(income) attributable to the noncontrolling interest     346       (336 )     (3,513 )     (363 )
Net (loss)/income attributable to Navios Holdings common stockholders   $ (13,048 )   $ 4,630     $ (39,084 )   $ 19,374  
(Loss)/income attributable to Navios Holdings common stockholders, basic   $ (13,475 )   $ 4,202     $ (40,352 )   $ 18,096  
(Loss)/income attributable to Navios Holdings common stockholders, diluted   $ (13,475 )   $ 4,630     $ (40,352 )   $ 19,374  
Basic (loss)/earnings per share attributable to Navios Holdings common stockholders   $ (0.13 )   $ 0.04     $ (0.40 )   $ 0.18  
Weighted average number of shares, basic     101,861,079       101,205,545       101,801,655       101,201,101  
Diluted (loss)/earnings per share attributable to Navios Holdings common stockholders   $ (0.13 )   $ 0.04     $ (0.40 )   $ 0.17  
Weighted average number of shares, diluted     101,861,079       110,997,200       101,801,655       111,009,020  
                                 
                                 
 
NAVIOS MARITIME HOLDINGS INC.
Other Financial Data
         
    September 30,
 2013
 (unaudited)
  December 31, 2012
(unaudited)
ASSETS            
             
Cash and cash equivalents   $ 214,163     257,868
Restricted cash     5,685     24,704
Other current assets     172,450     187,995
Vessels, port terminal and other fixed assets, net     1,798,211     1,746,493
Other noncurrent assets     434,437     355,008
Goodwill and other intangibles     356,886     369,394
Total assets   $ 2,981,832   $ 2,941,462
             
             
LIABILITIES AND EQUITY            
             
Current liabilities, including current portion of long-term debt     192,844     189,376
Senior and ship mortgage notes, net of discount and including premium     1,127,835     1,034,141
Long-term debt, net of current portion     305,362     290,976
Other noncurrent liabilities     92,377     103,930
Total stockholders' equity     1,263,414     1,323,039
Total liabilities and stockholders' equity   $ 2,981,832   $ 2,941,462
             
             
   
   
    Nine Month     Nine Month  
    Period Ended     Period Ended  
    September 30, 2013     September 30, 2012  
    (unaudited)     (unaudited)  
Net cash provided by operating activities   85,532     61,711  
Net cash (used in)/provided by investing activities   (223,580 )   20,844  
Net cash provided by/(used in) financing activities   94,343     (90,390 )
             
             
   

Disclosure of Non-GAAP Financial Measures

EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any, unless otherwise stated. EBITDA is a "non-GAAP financial measure" and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with generally accepted accounting principles in the United States or as a measure of profitability or liquidity.

EBITDA is presented to provide additional information with respect to the ability of Navios Holdings to satisfy its respective obligations including debt service, capital expenditures and working capital requirements. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA is used here may not be comparable to that used by other companies due to differences in methods of calculation.

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

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

 
 
 
Navios Holdings Reconciliation of EBITDA to Cash from Operations
             
    September 30,     September 30,  
Three Months Ended   2013     2012  
(in thousands of U.S. dollars)   (unaudited)     (unaudited)  
                 
  Net cash provided by operating activities   $ 44,181     $ 24,068  
  Net (decrease)/increase in operating assets     (27,026 )     12,948  
  Net (increase)/decrease in operating liabilities     (3,154 )     81  
  Net interest cost     27,415       26,952  
  Deferred finance charges     (1,192 )     (1,923 )
  Provision for losses on accounts receivable     (255 )     (132 )
  Unrealized loss on FFA derivatives     --       79  
  Equity in affiliates, net of dividends received     (1,763 )     (2,894 )
  Payments for drydock and special survey     2,018       1,922  
  Noncontrolling interest     346       (336 )
  EBITDA   $ 40,570     $ 60,765  
                 
                 
 
Navios Logistics EBITDA Reconciliation to Net (Loss)/Income
             
    September 30,     September 30,  
Three Months Ended   2013     2012  
(in thousands of U.S. dollars)   (unaudited)     (unaudited)  
                 
Net (loss)/income attributable to Navios Logistics shareholders   $ (956 )   $ 896  
Depreciation and amortization     5,746       7,153  
Amortization of deferred drydock and special survey costs     977       365  
Interest income/(expense) and finance cost, net     6,540       5,122  
Income tax benefit     (1,483 )     (380 )
EBITDA   $ 10,824     $ 13,156  
                 
                 
                 
Navios Holdings Reconciliation of EBITDA to Cash from Operations
             
    September 30,     September 30,  
Nine Months Ended   2013     2012  
(in thousands of U.S. dollars)   (unaudited)     (unaudited)  
                 
Net cash provided by operating activities   $ 85,532     $ 61,711  
Net (decrease)/increase in operating assets     (49,109 )     65,698  
Net decrease/(increase) in operating liabilities     6,424       (13,805 )
Net interest cost     80,145       77,498  
Deferred finance charges     (4,124 )     (4,755 )
Provision for losses on accounts receivable     (300 )     (442 )
Unrealized loss on FFA derivatives     (69 )     (173 )
Equity in affiliates, net of dividends received     (7,447 )     (9,799 )
Payments for drydock and special survey     10,287       8,531  
Noncontrolling interest     (3,513 )     (363 )
Gain on sale of assets     18       323  
EBITDA   $ 117,844     $ 184,424  
                 
                 
 
Navios Logistics EBITDA Reconciliation to Net Income
           
    September 30,     September 30,
Nine Months Ended   2013     2012
(in thousands of U.S. dollars)   (unaudited)     (unaudited)
               
Net income attributable to Navios Logistics shareholders   $ 9,401     $ 904
Depreciation and amortization     17,619       20,074
Amortization of deferred drydock and special survey costs     2,128       1,020
Interest income/(expense) and finance cost, net     18,578       15,175
Income tax (benefit)/expense     (5,196 )     74
EBITDA   $ 42,530     $ 37,247
               
 
 
EXHIBIT II
Owned Vessels
             
Vessel Name   Vessel Type   Year Built   Deadweight
(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
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 Asia Fleet(3)
Vessel Name   Vessel Type   Year
Built
  Deadweight
(in metric tons)
N Amalthia   Panamax   2006   75,318
 
 
 
Long term Chartered-in Fleet in Operation
                 
Vessel Name   Vessel Type   Year
Built
  Deadweight
(in metric tons)
  Purchase
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
Navios Marco Polo   Panamax   2011   80,647   Yes
Navios Southern Star   Panamax   2013   82,224   Yes
Golden Heiwa   Panamax   2007   76,662   No
Beaufiks   Capesize   2004   180,310   Yes
Rubena N   Capesize   2006   203,233   No
SC Lotta   Capesize   2009   169,056   No
King Ore   Capesize   2010   176,800   No
Navios Koyo   Capesize   2011   181,415   Yes
Navios Obeliks   Capesize   2012   181,415   Yes
 
 
 
Navios Asia Fleet to be Delivered (3)
             
Vessels   Vessel Type   Built     Estimated Delivery Date
N Bonanza   Panamax   2006     Q1 2014
Navios TBN   Panamax   2007     Q1 2015
Navios TBN   Panamax   2007     Q1 2015
Navios TBN   Panamax   2007     Q1 2015
Navios TBN   Panamax   2007     Q1 2015
 
 
 
Long-term Chartered-in Fleet to be Delivered
                 
 
Vessels
 
 
 
Vessel Type
 
 
Delivery
Date
 
 
Purchase
Option
 
 
Deadweight
(in metric tons)
Navios Venus   Ultra Handymax   02/2015   Yes   61,000
Navios Felix   Capesize   04/2016   Yes   180,000
   
(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.
(3) 51% ownership of Navios Holdings.
         
         
         

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