SOURCE: Navios Maritime Holdings Inc.

Navios Maritime Holdings Inc.

November 24, 2014 07:37 ET

Navios Maritime Holdings Inc. Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2014

MONACO--(Marketwired - Nov 24, 2014) - Navios Maritime Holdings Inc. (NYSE: NM)

  • Revenue
    • 25% increase to $152.6 million for Q3;
    • 10% increase to $420.2 million for nine months
       
  • EBITDA
    • 5% increase to $42.4 million for Q3;
    • 6% increase to $124.7 million for nine months

  • Dividend of $0.06 per share for Q3 2014

  • Acquisition of one 2012 South Korean-built Capesize vessel

  • IPO of Navios Maritime Midstream Partners L.P.

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, 2014.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, "We are pleased with our results for the third quarter of 2014, for which we reported EBITDA of $42.4 million, a 5% increase compared to the same period last year. As a result, we have announced a dividend of 6 cents for Q3 2014 representing a yield of about 4.2%. We have paid a dividend, uninterrupted, for nine years, regardless of the environment."

HIGHLIGHTS -- RECENT DEVELOPMENTS

Fleet Update

On September 17, 2014, Navios Holdings entered into an agreement to purchase a 2012-built 179,515 dwt South Korean Capesize vessel, the Navios Ray, for a purchase price of $51.4 million. The vessel was delivered on November 24, 2014 and was financed with a loan of $31.0 million and balance sheet cash.

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

In November 2014, Navios Midstream completed its initial public offering ("IPO") of 8,100,000 common units. Navios Maritime Acquisition Corporation ("Navios Acquisition") has an economic interest of 57.5% in Navios Midstream.

At the time of the IPO, Navios Acquisition entered into an ten-year option agreement with Navios Holdings under which Navios Acquisition granted Navios Holdings the option to acquire at least 25% of the outstanding membership interests in Navios Maritime Midstream GP LLC (the "Navios Midstream General Partner"), and all of the incentive distribution rights in Navios Midstream.

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

On August 22, 2014, Navios Logistics acquired a second-hand bunker vessel for an estimated total acquisition cost of $4.9 million, including repositioning cost to Argentina. The vessel was delivered on September 5, 2014 and is set to service a three-year time charter contract at $16,525 net per day adjusted for crew costs and foreign exchange differences.

Dividend Policy

On November 19, 2014, the Board of Directors declared a quarterly cash dividend for the third quarter of 2014 of $0.06 per share of common stock. The dividend is payable on December 18, 2014 to stockholders of record as of December 11, 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 indentures and other debt obligations and such other factors as the Board may deem advisable.

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

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

Navios Acquisition

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

Time Charter Coverage

Navios Holdings controls a fleet of 64 vessels totaling 6.4 million dwt, of which 40 are owned and 24 are chartered-in under long-term charters (collectively, the "Core Fleet"). Navios Holdings currently operates 55 vessels (17 Capesize, 17 Panamax, 19 Ultra Handymax and two Handysize) totaling 5.5 million dwt. The current average age of the operating fleet is 7.5 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 third and fourth quarter of 2015, respectively.

As of November 19, 2014, Navios Holdings has chartered-out 96.8% and 17.9%, including index-linked charters of available days for 2014 and 2015, respectively, which are expected to generate $201.9 million and $26.1 million in revenue, respectively. The average daily charter-out rate for the core fleet is $12,167 and $20,062 for 2014 and 2015, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2014 is $13,389.

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

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

Earnings Highlights

As of September 30, 2014:

  • Net Debt to Total Capitalization of 47.7%, improved by 8%.

  • Cash of $292.0 million.

EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share are non-U.S. GAAP financial measures and should not be used in isolation or as substitution for Navios Holdings' results calculated in accordance with U.S. GAAP.

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

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

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

             
    Three Month Period     Three Month Period  
    Ended     Ended  
    September 30,     September 30,  
    2014     2013  
    (unaudited)     (unaudited)  
Revenue   $ 152,592     $ 122,284  
EBITDA   $ 42,414     $ 40,570  
Net Loss   $ (16,595 )   $ (13,048 )
Basic Net Loss per Share   $ (0.20 )   $ (0.13 )
                 

Revenue from drybulk vessel operations for the three months ended September 30, 2014 was $73.5 million as compared to $72.5 million for the same period during 2013. The increase in drybulk revenue was mainly attributable to a net increase in available days for our fleet by 372 days. This increase was partially mitigated by a decrease in the time charter equivalent rate ("TCE") per day by 4.4% to $11,550 per day in the third quarter of 2014, as compared to $12,085 per day in the same period of 2013.

Revenue from the logistics business was $79.1 million for the three months ended September 30, 2014 as compared to $49.8 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) the commencement of operations of three new dry cargo convoys under time charter contracts during the second quarter of 2014; (iii) the increase in the cabotage fleet's operating days and the higher time charter rates achieved; and (iv) the increase in the Paraguayan liquid port's volume and the higher rates charged for products sold.

EBITDA of Navios Holdings for the three months ended September 30, 2014 increased by $1.8 million to $42.4 million as compared to $40.6 million for the same period of 2013. The $1.8 million increase in EBITDA was primarily due to (i) a $30.3 million increase in revenue; and (ii) a $1.6 million decrease in general and administrative expenses (excluding share-based compensation expenses). This overall increase of $31.9 million was mitigated by (i) a $17.0 million increase in time charter, voyage and logistics business expenses; (ii) a $3.6 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (iii) a $6.4 million decrease in equity in net earnings from affiliated companies; (iv) a $1.6 million increase in other expenses, net; and (v) a $1.5 million increase in net income attributable to the noncontrolling interest.

EBITDA of Navios Logistics was $18.1 million for the three month period ended September 30, 2014 as compared to $10.8 million for the same period in 2013.

Net Loss of Navios Holdings for the three months ended September 30, 2014 was $16.6 million as compared to a $13.1 million loss for the same period of 2013. The $3.5 million increase was mainly due (i) an increase in interest expense and finance cost, net of $0.4 million; (ii) an increase in depreciation and amortization of $2.4 million; (iii) an increase in income tax expense of $1.4 million; (iv) an increase of $0.3 million in share-based compensation expense; and (v) an increase of $0.8 million in amortization for deferred drydock and special survey costs. This increase was partially offset by an increase in EBITDA of $1.8 million.

Nine Months Ended September 30, 2014 and 2013 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

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

             
    Nine Month Period     Nine Month Period  
    Ended     Ended  
    September 30,     September 30,  
    2014     2013  
    (unaudited)     (unaudited)  
Revenue   $ 420,191     $ 381,693  
EBITDA   $ 124,675     $ 117,844  
Adjusted EBITDA (*)   $ 153,640     $ 117,844  
Net Loss   $ (51,222 )   $ (39,084 )
Adjusted Net Loss (*)   $ (22,257 )   $ (39,084 )
Basic Loss per Share   $ (0.56 )   $ (0.40 )
Adjusted Basic Loss per Share (*)   $ (0.28 )   $ (0.40 )
                 
(*) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per Share for the nine months ended September 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 drybulk vessel operations for the nine months ended September 30, 2014 was $225.5 million as compared to $195.2 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 4.7% to $12,084 per day in the nine month period ended September 30, 2014, as compared to $11,543 per day in the same period of 2013, and (ii) an increase in available days for our fleet by 2,031 days.

Revenue from the logistics business was $194.7 million for the nine months ended September 30, 2014 as compared to $186.5 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) the commencement of operations of three new dry cargo convoys under time charter contracts during the second quarter of 2014; and (iii) the increase in the cabotage fleet's operating days and the higher time charter rates achieved. The total increase was partially mitigated by a decrease in the Paraguayan liquid port's volume of products sold.

EBITDA of Navios Holdings for the nine months ended September 30, 2014 increased by $6.9 million to $124.7 million as compared to $117.8 million for the same period of 2013. EBITDA of Navios Holdings for the nine months ended September 30, 2014 has been affected by the items mentioned in the footnote to the table above. Adjusted EBITDA of Navios Holdings for the nine months period ended September 30, 2014 increased by $35.8 million to $153.6 million as compared to $117.8 million for the same period of 2013. The $35.8 million increase in Adjusted EBITDA was primarily due to (i) a $38.5 million increase in revenue; (ii) a $3.9 million decrease in time charter, voyage and logistics business expenses; (iii) a $4.8 million increase in equity in net earnings from affiliated companies; (iv) a $0.5 million decrease in general and administrative expenses (excluding share-based compensation expenses); and (v) a $0.1 million decrease in net income attributable to the noncontrolling interest. This overall increase of $47.8 million was partially mitigated by (i) a $10.1 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); (ii) a $1.9 million decrease in other income, net.

Adjusted EBITDA of Navios Logistics was $53.5 million (adjusted for the $27.3 million loss on bond extinguishment) for the nine month period ended September 30, 2014 as compared to $42.5 million for the same period in 2013.

Net Loss of Navios Holdings for the nine months ended September 30, 2014 was $51.2 million as compared to $39.1 million for the same period of 2013. Net Loss of Navios Holdings for the nine months ended September 30, 2014 has been affected by the items mentioned in the footnote to the table above. Adjusted Net Loss of Navios Holdings for the nine months ended September 30, 2014 was $22.3 million as compared to $39.1 million for the same period of 2013. The $16.8 million decrease in Adjusted Net Loss was mainly due to an increase in Adjusted EBITDA of $35.8 million. This increase was partially offset by (i) an increase in interest expense and finance cost, net of $4.4 million; (ii) an increase in depreciation and amortization of $5.3 million; (iii) an increase in income tax expense of $6.1 million; (iv) an increase of $0.9 million in share-based compensation expense; and (v) an increase of $2.3 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 nine month periods ended September 30, 2014 and 2013, respectively.

                         
    Three Month     Three Month     Nine Month     Nine Month  
    Period Ended     Period Ended     Period Ended     Period Ended  
    September 30,     September 30,     September 30,     September 30,  
    2014     2013     2014     2013  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
Available Days (1)     5,449       5,077       16,006       13,975  
Operating Days (2)     5,443       5,056       15,972       13,702  
Fleet Utilization (3)     99.9 %     99.6 %     99.8 %     98.1 %
Equivalent Vessels (4)     59       55       59       51  
TCE (5)   $ 11,550     $ 12,085     $ 12,084     $ 11,543  
   
(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 24, 2014, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on earnings results for the third quarter and nine months ended September 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: Monday, November 24, 2014, at 8:30 am ET
Call Title: Navios Holdings Q3 2014 Financial Results Conference Call
US Dial In: +1.877.480.3873
International Dial In: +1.404.665.9927
Conference ID: 3748 7862

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: 3748 7862

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.

About Navios Maritime Midstream Partners L.P.

Navios Maritime Midstream Partners L.P. (NYSE: NAP) is a Marshall Islands limited partnership recently formed by Navios Acquisition to own, operate and acquire crude oil tankers, refined petroleum product tankers, chemical tankers and liquefied petroleum gas tankers under long-term employment contracts. For more information about Navios Midstream please visit its website: www.navios-midstream.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 expectations 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 at the time made, 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 charter demand and/or charter rates; production or the demand for the types of dry bulk products that are transported by Navios Holdings' vessels; operating costs, including but not limited to changes in crew salaries, insurances, provisions, repairs, maintenance, overhead expenses, and changes in interest costs; competition 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
 Period Ended
 September 30, 2014
    Three Month
 Period Ended
 September 30, 2013
    Nine Month
 Period Ended
 September 30, 2014
    Nine Month
Period Ended
 September 30, 2013
 
    (unaudited)     (unaudited)     (unaudited)     (unaudited)  
Revenue   $ 152,592     $ 122,284     $ 420,191     $ 381,693  
Time charter, voyage and logistics business expenses     (72,506 )     (55,455 )     (187,198 )     (191,095 )
Direct vessel expenses     (35,785 )     (31,392 )     (97,953 )     (85,531 )
General and administrative expenses     (7,784 )     (9,137 )     (28,382 )     (27,972 )
Depreciation and amortization     (26,798 )     (24,410 )     (78,300 )     (72,966 )
Interest expense and finance cost, net     (27,940 )     (27,415 )     (84,507 )     (80,145 )
Gain on sale of assets     --       --       --       18  
Loss on bond extinguishment     --       --       (27,281 )     --  
Other (expense)/income, net     (2,392 )     (806 )     (7,807 )     5,668  
Loss before equity in net earnings of affiliated companies     (20,613 )     (26,331 )     (91,237 )     (70,330 )
Equity in net earnings of affiliated companies     5,094       11,530       34,591       29,780  
Loss before taxes   $ (15,519 )   $ (14,801 )   $ (56,646 )   $ (40,550 )
Income tax benefit/(expense)     35       1,407       (1,101 )     4,979  
Net loss     (15,484 )     (13,394 )     (57,747 )     (35,571 )
Less: Net (income)/loss attributable to the noncontrolling interest     (1,111 )     346       6,525       (3,513 )
Net loss attributable to Navios Holdings common stockholders   $ (16,595 )   $ (13,048 )   $ (51,222 )   $ (39,084 )
Loss attributable to Navios Holdings common stockholders, basic   $ (20,506 )   $ (13,475 )   $ (57,933 )   $ (40,352 )
Loss attributable to Navios Holdings common stockholders, diluted   $ (20,506 )   $ (13,475 )   $ (57,933 )   $ (40,352 )
Basic net loss per share attributable to Navios Holdings common stockholders   $ (0.20 )   $ (0.13 )   $ (0.56 )   $ (0.40 )
Weighted average number of shares, basic     103,798,829       101,861,079       103,082,480       101,801,655  
Diluted net loss per share attributable to Navios Holdings common stockholders   $ (0.20 )   $ (0.13 )   $ (0.56 )   $ (0.40 )
Weighted average number of shares, diluted     103,798,829       101,861,079       103,082,480       101,801,655  
                                 
                                 
                                 
NAVIOS MARITIME HOLDINGS INC.
Other Financial Data
 
   
    September 30,
 2014
 (unaudited)
    December 31,
 2013
(unaudited)
 
ASSETS                
Cash and cash equivalents   $ 290,092     $ 187,831  
Restricted cash     1,880       2,041  
Other current assets     166,669       150,114  
Deposits for vessel acquisitions     17,623       28  
Vessels, port terminal and other fixed assets, net     1,896,467       1,808,855  
Other noncurrent assets     431,115       418,744  
Goodwill and other intangibles     337,416       352,000  
Total assets   $ 3,141,262     $ 2,919,613  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities, including current portion of long-term debt     187,782       149,767  
Senior and ship mortgage notes, including premium     1,375,000       1,293,156  
Long-term debt, net of current portion     221,274       198,832  
Other noncurrent liabilities     79,610       88,523  
Total stockholders' equity     1,277,596       1,189,335  
Total liabilities and stockholders' equity   $ 3,141,262     $ 2,919,613  
                 
                 
                 
    Nine Month Period Ended September 30, 2014     Nine Month Period Ended September 30, 2013  
    (unaudited)     (unaudited)  
Net cash provided by operating activities   $ 33,775     $ 79,055  
Net cash used in investing activities   $ (165,908 )   $ (217,103 )
Net cash provided by financing activities   $ 234,394     $ 94,343  
                 
   

Disclosure of Non-GAAP Financial Measures

EBITDA represents net income/(loss) plus interest and finance costs plus depreciation and amortization and income taxes, if any, before stock-based compensation. Adjusted EBITDA represents EBITDA excluding certain items as described under "Earnings Highlights". EBITDA and Adjusted EBITDA are "non-GAAP financial measures" 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. Navios Holdings believes that EBITDA and Adjusted EBITDA are a basis upon which liquidity can be assessed.

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

Navios Logistics EBITDA and Adjusted EBITDA are used to measure that company's operating performance.

The following tables provide a reconciliation of EBITDA and Adjusted EBITDA of Navios Holdings (including Navios Logistics) and Navios Logistics on a stand-alone basis:

Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations  
   
    September 30,     September 30,  
Three Months Ended   2014     2013  
(in thousands of U.S. dollars)   (unaudited)     (unaudited)  
                 
Net cash (used in)/provided by operating activities   $ (6,717 )   $ 41,182  
Net decrease in operating assets     (2,841 )     (27,026 )
Net decrease/(increase) in operating liabilities     26,189       (3,154 )
Net interest cost     27,940       27,415  
Deferred finance charges     (943 )     (1,192 )
Provision for losses on accounts receivable     (377 )     (255 )
Equity in affiliates, net of dividends received     (2,693 )     1,236  
Payments for drydock and special survey     2,967       2,018  
Noncontrolling interest     (1,111 )     346  
EBITDA   $ 42,414     $ 40,570  
                 
                 
                 
    September 30,     September 30,  
Nine Months Ended   2014     2013  
(in thousands of U.S. dollars)   (unaudited)     (unaudited)  
                 
Net cash provided by operating activities   $ 33,775     $ 79,055  
Net increase/(decrease) in operating assets     26,506       (49,109 )
Net (increase)/decrease in operating liabilities     (21,739 )     6,424  
Net interest cost     84,507       80,145  
Deferred finance charges     (2,679 )     (4,124 )
Expenses related to Navios Logistics bond extinguishment     (4,786 )     --  
Provision for losses on accounts receivable     (866 )     (300 )
Unrealized losses on FFA derivatives     --       (69 )
Equity in affiliates, net of dividends received     7,291       (970 )
Payments for drydock and special survey     7,694       10,287  
Gain on sale of assets     --       18  
Noncontrolling interest     6,525       (3,513 )
Portion of loss on Navios Logistics bond extinguishment     17,412       --  
Adjusted EBITDA   $ 153,640     $ 117,844  
                 
                 
                 
Navios Logistics EBITDA and Adjusted EBITDA Reconciliation to Net Income/(Loss)  
   
    September 30,     September 30,  
Three Months Ended   2014     2013  
(in thousands of U.S. dollars)   (unaudited)     (unaudited)  
                 
Net income/(loss) attributable to Navios Logistics shareholders   $ 3,072     $ (956 )
Depreciation and amortization     6,652       5,746  
Amortization of deferred drydock and special survey costs     1,696       977  
Interest expense and finance cost, net     6,836       6,540  
Income tax expense     (129 )     (1,483 )
EBITDA   $ 18,127     $ 10,824  
                 
                 
                 
    September 30,     September 30,  
Nine Months Ended   2014     2013  
(in thousands of U.S. dollars)   (unaudited)     (unaudited)  
                 
Net (loss)/income attributable to Navios Logistics shareholders   $ (18,540 )   $ 9,401  
Depreciation and amortization     18,701       17,619  
Amortization of deferred drydock and special survey costs     4,246       2,128  
Interest expense and finance cost, net     20,999       18,578  
Income tax expense/(benefit)     829       (5,196 )
Loss on bond extinguishment     27,281       --  
Adjusted EBITDA   $ 53,516     $ 42,530  
                 
                 
                 
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
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 Ray   Capesize   2012   179,515
Navios Gem   Capesize   2014   181,336
     
             
             
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
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
 
Vessels   Vessel Type   Delivery Date   Deadweight
(in metric tons)
Navios Sphera   Panamax   Q3 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 Amber   Panamax   Q2 2015   80,000   Yes
Navios TBN   Panamax   Q3 2015   82,000   Yes
Navios Felix   Capesize   Q2 2016   180,000   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.
   

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