EX-99.1 2 file2.htm PRESS RELEASE


Exhibit 99.1


Navios Maritime Holdings Inc. Reports Financial Results for the Fourth Quarter
and Year ended December 31, 2006


•

32% Annual EBITDA Growth excluding one time charge

•

Largest US-listed Dry Bulk Carrier controlling 45 vessels and 3.6 million DWT

•

Announces Quarterly Dividend of $0.0666 per share



PIRAEUS, GREECE, March 8, 2007 – Navios Maritime Holdings Inc. (“Navios”) (NYSE: “NM”, “NM WS”), a leading vertically integrated global shipping company specializing in the dry-bulk shipping industry, today reported its financial results for the fourth quarter and the year ended December 31, 2006.


Ms. Angeliki Frangou, Chairman and CEO of Navios, stated: “I am proud of our transformation. Since August of 2005, Navios has grown its owned fleet by 250%. This growth has enabled Navios to achieve economies of scale and keep operating costs below the industry average. Notwithstanding this growth, Navios has also been able to continue to solidify its balance sheet by securing additional equity and refinancing its debt through the public and private markets. This balance sheet should allow further rational expansion while providing current and future cash returns to investors. We believe that Navios’ flexible business model, with different business lines, will mitigate industry risk and permit Navios to continue to consolidate its leadership position in the dry bulk market. Today, Navios is the largest US-listed dry bulk carrier, and we intend to opportunistically make additional vessel and other acquisitions in 2007.”



2006 HIGHLIGHTS AND RECENT DEVELOPMENTS


STRATEGIC HIGHLIGHTS


Equity – Warrant Program


Navios raised a total of $136.7 million ($65.5 million in 2006 and $71.2 million in 2007) from two tender offers for warrants.


Debt


Navios concluded a $300.0 million bond offering, with an 8-year term and coupon of 9.5%.  In February 2007, Navios also concluded a syndicated bank facility of $400.0 million.  The rate on the bank facility is initially Libor plus 70 basis points. The net result of the bond offering and the loan facility was to significantly reduce annual debt service during the term of the loans.


Corporate


Navios repositioned its Risk Management Business, composed of Forward Freight Agreements (“FFAs”), Contracts of Affreightment and short-term chartering, to provide sustainable supplemental cash flow while reducing downside volatility.


Logistics


Navios launched a strategic initiative to capitalize on the inherent potential of the logistics business in Navios’ facility in Uruguay.







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Secured Cash Flow


Navios entered into long-term time charters for 20 vessels with an average length of 1.8 years, thereby improving secured revenue and insulating the company from volatility in the dry bulk market.


Fleet Expansion


Navios exercised options on five panamaxes and two handymaxes, for an aggregate price of $138.6 million.


Navios entered into one new long-term charter on an 80,000 DWT newbuilding panamax for delivery in 2011 for zero capital outlay.


Dividends


In respect of 2006, Navios will have paid out a total of $17.9 million in dividend payments in addition to $3.0 million paid in respect of 2005.


Recent Activities


Navios acquired Kleimar NV on February 2, 2007, entering the capesize sector of the dry bulk industry.


Navios listed its shares of common stock and warrants on the New York Stock Exchange on February 22, 2007.


FINANCIAL HIGHLIGHTS


Navios grew EBITDA by 32%, excluding a one time charge, to $108.5 million in 2006 from $82.2 million in 2005.


Net debt to book capitalization was reduced to 53.7% as at December 31, 2006 from 64.4% as at December 31, 2005.


Ms. Angeliki Frangou, Chairman and CEO of Navios, stated: “2006 was a year where we evolved our organization significantly. We also delivered strong financial results as Navios grew EBITDA, excluding a one time charge, by 32%, while maintaining operating costs below industry average and a youthful fleet with an average age of 4.6 years.”



For the following results and the selected financial data presented herein, Navios has compiled consolidated statement of operations for the three month period ended December 31, 2006 and 2005, consolidated statement of operations for the year ended December 31, 2006 and combined statement of operations for the year ended December 31, 2005 (including the predecessor business from January 1, 2005 to August 25, 2005 and the successor business for the period from August 26, 2005 to December 31, 2005). The 2006 and 2005 information was derived from the audited financial statements of the successor and predecessor. Navios has prepared combined statement of operations information for 2005, solely to enable comparisons for the years ended December 31, 2006 and 2005. The combined information and EBITDA are non-US GAAP financial measures and should not be used in isolation or substitution for the predecessor and successor results.













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Fourth Quarter 2006 Results (in thousands of US Dollars):



 

 

Successor

 

 

Three Months ended

December 31, 2006

 

Three Months ended

December 31, 2005

 

 

 

 

 

Revenues

$

52,537

$

55,922

EBITDA

$

18,983

$

18,766

EBITDA excluding one time charge (*)

$

24,344

$

18,766

Net (loss) / income

$

(5,721)

$

1,124

Net income excluding one time charges (*)

$

5,349

$

1,124


(*) One time charges concern write offs of (a) a doubtful receivable amounting to $5.4 million affecting EBITDA and (b) deferred financing fees amounting to $5.7 million not affecting EBITDA.


Navios earns revenue from both owned and chartered-in vessels, contracts of affreightment and port terminal operations.


Revenue from vessels operations for the three months ended December 31, 2006 was $51.1 million as compared to $54.7 million for the same period during 2005.  The decline in revenues is mainly attributable to a decline in the average time charter market resulting in lower TCE per day in 2006 as compared to those in 2005. The achieved TCE rate per day, excluding FFAs, decreased 18.0% from $21,583 per day in the fourth quarter of 2005 to $17,692 per day in the same period of 2006. The decline was partially mitigated by the available days for the fleet which increased 21.7% from 2,261 days in the fourth quarter of 2005 to 2,751 days in the same period of 2006.


Revenue from port terminal operations was approximately $1.4 million in the fourth quarter of 2006 as compared to $1.2 million during the same period of 2005. The port terminal throughputs in the fourth quarter of 2006 were 417,400 tons as compared to 351,400 tons in the same period of 2006.


EBITDA for the fourth quarter of 2006 of $19.0 million was adversely affected by a one time charge relating to the write off of a doubtful receivable of $5.4 million. Ignoring the effect of this one time charge, EBITDA for the quarter would have been $24.3 million as compared to $18.8 million for the same period of 2005.  The increase in EBITDA of $5.5 million was primarily due to a gain in FFA trading of $0.4 million for the fourth quarter of 2006 as compared to a loss of $1.9 million for the same period of 2005, the reduction in time charter, voyage and port terminal expenses by $9.8 million from $29.4 million in the fourth quarter for 2005 to $19.6 million in the same period of 2006, the reduction in general and administrative expenses by $0.6 million to $3.1 million in the fourth quarter of 2006 from $3.7 million in the same period of 2005. This overall favorable variance of $12.7 million was mitigated by the decrease in revenues of $3.5 million, the increase in direct vessel expenses of $2.8 million (excluding the amortization of dry docking and special survey costs) million in the fourth quarter of 2006 and net increase in all other expense categories by $0.9 million.


Net loss for the fourth quarter ended December 31, 2006 was affected by one time charges relating to write offs of a doubtful receivable of $5.4 million mentioned above and deferred loan financing costs of $5.7 million due to the partial repayment of the HSH bank loan. Ignoring the effects of these one time charges, net income for the quarter would have been $5.3 million as compared to $1.1 million net income for the comparable period of 2005.  The resultant increase of net income by $4.2 million was due to the $5.5 million increase in EBITDA and the overall decrease in depreciation and amortization by $0.8 million. The increase was mitigated by a $2.1 million increase in interest expense.













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Year 2006 Results (in thousands of US Dollars):


 

 

Successor

 

Predecessor

 

Combined

 

 


 

Year Ended

December 31, 2006

 

August 26, 2005

to

December 31, 2005

 

January 1, 2005

To

August 25, 2005

 


 

Year Ended

December 31, 2005

 

 

 

 

 

 

 

 

 

Revenues

$

205,965

$

76,376

$

158,630

$

235,006

EBITDA

$

103,177

$

26,537

$

55,696

$

82,233

EBITDA excluding one time charge (*)

$

108,538

$

26,537

$

55,696

$

82,233

Net income

$

21,069

$

2,161

$

51,337

$

53,498

Net income excluding one time charges (*)

$

32,138

$

2,161

$

51,337

$

53,498


(*) One time charges concern write offs of (a) a doubtful receivable amounting to $5.4 million affecting EBITDA and (b) deferred financing fees amounting to $5.7 million not affecting EBITDA.


Navios earns revenue from both owned and chartered-in vessels, contracts of affreightment and port terminal operations.


Revenue from vessels operations for the year ended December 31, 2006 was $197.5 million as compared to $227.0 million for the same period during 2005. This decline in revenues is mainly attributable to a decline in the average time charter market resulting in lower TCE per day in 2006 as compared to those in 2005. The achieved TCE rate per day, excluding FFAs, decreased 25.7% from $22,760 per day in 2005 to $16,906 per day in 2006. The decline was partially mitigated by the available days for the fleet which increased 13.5% from 9,147 days in 2005 to 10,382 days in 2006.


Revenue from port terminal operations for the year ended December 31, 2006 was $8.5 million as compared to $8.1 million in the same period of 2005. This is attributable to the increased throughputs in the year ended December 31, 2006 of 2,216,800 tons as compared to 2,060,000 tons in the same period of 2005.


EBITDA for the year ended December 31, 2006 of approximately $103.2 million was affected by a one time charge relating to the write off of a doubtful receivable of $5.4 million. Without this one time charge, EBITDA for the year would have been $108.5 million for 2006 as compared to $82.2 million for the same period of 2005.  This resultant $26.4 million increase in EBITDA was primarily due to (a) a $19.7 million increase in gain from FFAs (b) a $46.6 million reduction in time charter and voyage and port terminal expenses, due to the redelivery of higher cost chartered-in vessels and the exercise of purchase options that resulted in the expansion of the owned fleet. The above overall favorable variance of $66.3 million was mitigated by the decrease in revenues by $28.9 million for the reasons explained above and the $ 11.0 million increase in direct vessel expenses (excluding the amortization of deferred dry dock and special survey costs) as a result of the increase of owned fleet.  


Net income for the year ended December 31, 2006 of $21.1 million was affected by the one time charges relating to the write offs of the doubtful receivable of $5.4 million mentioned above and deferred loan financing costs of $5.7 million due to the partial repayment of the HSH bank loan. Without these one time charges, net income for the year would have been $32.1 million as compared to $53.5 million for the comparable period of 2005. Notwithstanding the $26.4 million increase in EBITDA, net income decreased by $21.4 million due to: (a) a $14.9 million increase in depreciation and amortization of dry docking and special survey costs, due to the expansion of the owned fleet arising from the exercise of purchase options, (b) a $6.1 million increase in amortization costs related to the intangible assets as part of the acquisition in accordance with purchase accounting principles under US GAAP, (c) a $26.8 million increase in interest expense, net due to additional financing for the acquisition of new vessels.


Navios’ cash and cash equivalents balance (including restricted cash) on December 31, 2006, was $115.9 million.







-4-






Acquisition of Kleimar:


On February 2, 2007, Navios acquired all of the outstanding share capital of Kleimar NV for a cash consideration of $165.6 million (excluding direct acquisition costs), subject to certain adjustments. It is anticipated that the net cash consideration to be paid for the shares will be approximately $140.3 million, after taking into account the cash retained on Kleimar’s balance sheet and certain proceeds from an asset sale triggered by the change in control of Kleimar. As part of the acquisition Navios has also assumed Kleimar’s outstanding debt of approximately $21.3 million.


Kleimar is a Belgian maritime transportation company established in 1993. Kleimar has 11 employees and is an owner and operator of capesize and panamax vessels used in transporting cargoes. It also has an extensive Contract of Affreightment ("COA") business, a large percentage of which involves transporting cargo to China.


Kleimar’s fleet is chartered in at an average rate of $17,477 for the Capesize vessels, and $12,109 for the Panamax vessels. The fleet is mainly used to cover the COA’s which are secured at an average Time Charter Equivalent rate of $28,445 for capsize and $12,153 for panamax.


The information presented in Exhibit 2 with respect to Navios’ fleet profile, time charter coverage and vessels employment does not include the effect from the acquisition of Kleimar’s fleet, the profile of which is presented in Exhibit 3.



Time Charter Coverage:


Navios has extended its long-term fleet employment by recently concluding agreements to charter out vessels for periods ranging from one to three years. As a result, as of March 1, 2007, Navios has currently contracted 84.4%, 49.6% and 11.2% of its available days on a charter-out basis for 2007, 2008 and 2009, respectively, equivalent to $179.0 million, $127.0 million and $27.8 million in revenue, respectively. The average contractual daily charter-out rate for the core fleet is $20,373, $22,358 and $21,969 for 2007, 2008 and 2009, respectively. The average daily charter-in rate for the active long term charter-in vessels for 2007 is $9,622.



Purchase Option:


In December 2006, Navios exercised its option to acquire the vessel Navios Hyperion, which was delivered on February 26, 2007. Navios Hyperion is a 2004 built, 75,500 DWT Panamax. The vessel’s purchase price was approximately $20.2 million and its current market value is estimated at $50.5 million.


Navios has ten additional purchase options exercisable over the next four years. Eight from its core fleet and an additional two purchase options from the fleet acquired from Kleimar.


Dividend:


As announced today, the Board of Directors of Navios has declared a quarterly cash dividend of $0.0666 per common share, payable on March 30, 2007 to stockholders of record as of March 19, 2007.













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Fleet Summary Data:


The following table reflects certain key indicators indicative of the performance of the Company and its core fleet performance for the three month periods ended December 31, 2006 and 2005, and the years ended December 31, 2006  and 2005 (combined).


 

 

Successor

 

Successor

 

Successor

 

Combined

 

 

Three Months Ended

 

Years Ended

 

 

December 31, 2006

 

December 31, 2005

 

December 31, 2006

 

December 31, 2005

 

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

 

(Unaudited)

Available Days  (1)

 

2,751

 

2,261

 

10,382

 

9,147

Operating Days  (2)

 

2,714

 

2,253

 

10,333

 

9,110

Fleet Utilization  (3)

 

98.7%

 

99.6%

 

99.5%

 

99.6%

Time Charter Equivalent including FFAs (4)

 

$17,846

 

$20,757

 

$18,812

 

$22,771

Time Charter Equivalent excluding  FFAs (4)

 

$17,692

 

$21,583

 

$16,906

 

$22,760



(1)  Available days for fleet are total calendar days the vessels were in our possession for the relevant period after subtracting off-hire days associated with major repairs, drydocks 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 is 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 our vessels were available for revenue generating available days, 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)  Time Charter Equivalent, or TCE, are defined as voyage and time charter revenues plus gains or losses on FFAs less voyage expenses during a relevant period divided by the number of available days during the period.


Fleet Employment Profile:


Following the acquisition of Kleimar, Navios controls a fleet of 45 vessels totaling 3.6 million dwt, of which 21 are owned and 24 are chartered in under long term charters. The company operates 36 vessels totaling 2.9 million dwt and it has nine newbuildings to be delivered. Four of these vessels are expected to be delivered in 2007, and the remaining five at various dates through 2011. The average age of the operating fleet is 4.6 years.


Exhibit 2 displays the “core fleet” employment profile of Navios excluding the Kleimar fleet. Exhibit 3 displays the “core fleet” of Kleimar.


Conference Call:


As already announced, today, Thursday, March 8, 2007, at 08:30 AM EST, the Company’s management will host a conference call to discuss the results.


Participants should dial into the call 10 minutes before the scheduled time using the following numbers: +1-888-694-4676 (from the US) or +1-973-582-2737 (from outside the US). Pass code: 8509484


A telephonic replay of the conference call will be available until Wednesday, March 14, 2007 by dialing +1-877-519-4471 (from the US) or +1-973-341-3080 (from outside the US). Pass code: 8509484.





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Webcast:


This call will simultaneously be Webcast at the following Web address:


http://www.videonewswire.com/event.asp?id=38210


The Webcast will be archived and available at this same Web address for one year following the call.



ABOUT NAVIOS MARITIME HOLDINGS INC.


On August 25, 2005, pursuant to a Stock Purchase Agreement dated February 28, 2005, as amended, by and among International Shipping Enterprises, Inc. (“ISE”), Navios Maritime Holdings Inc. (“Navios”) and all the shareholders of Navios, ISE acquired Navios through the purchase of all of its outstanding shares of common stock. As a result of this acquisition, Navios became a wholly-owned subsidiary of ISE. In addition, on August 25, 2005, simultaneously with the acquisition of Navios, ISE effected a reincorporation from the State of Delaware to the Republic of the Marshall Islands through a downstream merger with and into its newly acquired wholly-owned subsidiary, whose name was and continued to be Navios Maritime Holdings Inc.



Navios currently owns and operates a fleet of ten Ultra Handymax, nine Panamax, one Capesize and one Product tanker vessels. It also time charters in and operates a fleet of two Ultra Handymax, eight Panamax, four Capesize and one Handysize vessels, which are employed to provide worldwide transportation of bulk commodities on a long term basis. Furthermore, it also operates a port and transfer terminal located in Nueva Palmira, Uruguay. The facility consists of docks, conveyors and silo storage capacity totaling 270,440 tons. The core fleet has a total capacity of 2.9 million dwt and an average age of approximately 4.6 years. The Company has options to acquire six chartered-in vessels in operation and four chartered-in vessels on order. Furthermore, it also has six long term chartered-in vessels, which are expected to be delivered at various dates from May 2007 to September 2011. Above information includes the fleet of Kleimar which is displayed in Exhibit 3.


Forward Looking Statements


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 the Company’s 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 the Company 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 the Company. 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 the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company’s filings with the Securities and Exchange Commission. The Company 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 the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.







-7-





EXHIBIT 1


NAVIOS MARITIME HOLDINGS INC.

CONSOLIDTED BALANCE SHEETS

(expressed in thousands of US Dollars)


 

 

 

 

 

 

 

December 31, 2006

 

December 31, 2005

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

Cash and cash equivalents

$

99,658

$

37,737

Restricted cash

 

16,224

 

4,086

Accounts receivable, net

 

28,235

 

13,703

Short term derivative assets

 

39,697

 

45,556

Short term backlog assets

 

5,246

 

7,019

Prepaid expenses and other current assets

 

6,809

 

6,438

Total current assets

 

195,869

 

114,539

 

 

 

 

 

Deposit on exercise of vessels purchase options

 

2,055

 

8,322

Vessels, port terminal and other fixed assets, net

 

505,292

 

365,997

Long term derivative assets

 

-

 

28

Deferred financing costs, net

 

11,454

 

11,677

Deferred dry dock and special survey costs, net

 

3,546

 

2,448

Investments in affiliates

 

749

 

657

Long term back log asset

 

2,497

 

7,744

Trade name

 

86,202

 

89,014

Port terminal operating rights

 

29,954

 

30,728

Favorable lease terms

 

66,376

 

117,440

Goodwill

 

40,789

 

40,789

Total non-current assets

 

748,914

 

674,844

 

 

 

 

 

Total Assets

$

944,783

$

789,383

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

Accounts payable

$

37,366

$

13,886

Accrued expenses

 

10,726

 

11,253

Deferred voyage revenue

 

4,657

 

6,143

Short term derivative liability

 

42,034

 

39,992

Short term backlog liability

 

5,946

 

8,109

Current portion of long term debt

 

8,250

 

54,221

Total current liabilities

 

108,979

 

133,604

 

 

 

 

 

Senior notes, net of discount

 

297,956

 

-

Long term debt, net of current portion

 

261,856

 

439,179

Long term liabilities

 

979

 

2,297

Long term derivative liability

 

797

 

598

Long term backlog liability

 

-

 

5,947

Total non-current liabilities

 

561,588

 

448,021

Total liabilities

 

670,567

 

581,625

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

Stockholders’ Equity

 

 

 

 

 

 

 

 

 

Preferred stock - $0.0001 par value, authorized 1,000,000 shares. None issued

 

-

 

-

Common stock - $ 0.0001 par value, authorized 120,000,000 shares, issued and outstanding 62,088,127 and 44,239,319 as of December 31, 2006 and 2005, respectively

 

6

 

4

Additional paid-in capital

 

276,178

 

205,593

Accumulated other comprehensive income

 

(9,816)

 

-

Retained earnings

 

7,848

 

2,161

Total stockholders’ equity

 

274,216

 

207,758

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

$

944,783

$

789,383








-8-





NAVIOS MARITIME HOLDINGS INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(expressed in thousands of US Dollars – except per share data)


 

 

Successor

 

Successor

 

Predecessor

 

 

 

 

Year

 ended

December 31, 2006

 

August 26, 2005

To

December 31, 2005

 

January 1, 2005

To

August 25, 2005

 

Combined Year

Ended

December 31, 2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

$

205,965

$

76,376

$

158,630

$

235,006

Gain (loss) on Forward Freight Agreements

 

19,786

 

(2,766)

 

2,869

 

103

Time charter, voyage and port terminal expenses

 

(84,717)

 

(39,119)

 

(91,806)

 

(130,925)

Direct vessel expenses

 

(19,863)

 

(3,137)

 

(5,650)

 

(8,787)

General and administrative expenses

 

(14,565)

 

(4,582)

 

(9,964)

 

(14,546)

Depreciation and amortization

 

(37,719)

 

(13,582)

 

(3,872)

 

(17,454)

Provision for losses on accounts receivable

 

(6,242)

 

(411)

 

-

 

(411)

Interest income

 

3,832

 

1,163

 

1,350

 

2,513

Interest expense and finance cost, net

 

(47,429)

 

(11,892)

 

(1,677)

 

(13,569)

Other income

 

1,819

 

52

 

1,426

 

1,478

Other expense

 

(472)

 

(226)

 

(757)

 

(983)

Income before equity in net earning of affiliate companies

 


20,395

 


1,876

 


50,549

 


52,425

Equity in net Earnings of Affiliated Companies

 

674

 

285

 

788

 

1,073

Net income

$

21,069

$

2,161

$

51,337

$

53,498

 

 

 

 

 

 

 

 

 

Earnings per share, basic

$

0.38

$

0.05

$

58.70

$

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares, basic

 

54,894,402

 

40,189,356

 

874,584

 

 

 

 

 

 

 

 

 

 

 

Earnings per share, diluted

$

0.38

$

0.05

$

58.70

$

 

 

 

 

 

 

 

 

 

 

Weighted average number of shares, diluted

 

55,529,688

 

45,238,554

 

874,584

 

 


 

 

 

 

 

 

 

Three Months ended

December 31, 2006

 

Three Months ended

December 31, 2005

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

Revenue

$

52,537

$

55,922

Gain (loss) on Forward Freight Agreements

 

423

 

(1,868)

Time charter, voyage and port terminal expenses

 

(19,624)

 

(29,351)

Direct vessel expenses

 

(5,094)

 

(2,278)

General and administrative expenses

 

(3,058)

 

(3,717)

Depreciation and amortization

 

(9,456)

 

(9,735)

Provision for losses on accounts receivable

 

(6,070)

 

-

Interest income

 

1,219

 

921

Interest expense and finance cost, net

 

(16,788)

 

(8,714)

Other income

 

70

 

407

Other expense

 

(28)

 

(620)

Income before equity in net earning of affiliate companies

 


(5,869)

 


967

Equity in net Earnings of Affiliated Companies

 

148

 

157

Net (loss)/ income

$

(5,721)

$

1,124

 

 

 

 

 

(Loss) / earnings  per share, basic

$

(0.09)

$

0.03

 

 

 

 

 

Weighted average number of shares, basic

 

62,088,127

 

40,302,583

 

 

 

 

 

(Loss) / earnings per share, diluted

$

(0.09)

$

0.03

 

 

 

 

 

Weighted average number of shares, diluted

 

62,088,127

 

43,304,873








-9-






NAVIOS MARITIME HOLDINGS INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(expressed in thousands of US Dollars)



 

 

Successor

 

Successor

 

Predecessor

 

 

Year

ended

December 31, 2006

 

August 26, 2005

To

December 31, 2005

 

January 1, 2005

To

August 25, 2005

 

 

 

 

 

 

 

OPERATING ACTIVITIES

 

 

 

 

 

 

Net income

$

21,069

$

2,161

$

51,337

Adjustments to reconcile net income to net cash
provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

37,719

 

13,582

 

3,872

Amortization of deferred financing cost

 

8,004

 

1,253

 

425

Amortization of deferred dry dock costs

 

1,382

 

143

 

160

Amortization of backlog

 

(590)

 

(78)

 

-

Provision for losses on accounts receivable

 

6,024

 

411

 

(880)

Unrealized (gain)/loss on FFA derivatives

 

(12,484)

 

17,074

 

23,793

Unrealized (gain)/loss on foreign exchange contracts

 

(56)

 

(212)

 

338

Unrealized gain on interest rate swaps

 

(85)

 

(384)

 

(403)

Earnings in affiliates, net of dividends received

 

(92)

 

(285)

 

185

Changes in operating assets and liabilities:

 

 

 

 

 

 

(Increase) decrease  in restricted cash

 

(12,138)

 

433

 

(1,005)

(Increase) decrease in accounts receivable

 

(20,556)

 

(9,193)

 

11,768

(Increase) decrease  in prepaid expenses and other

 

(371)

 

2,896

 

3,762

Increase (decrease) in accounts payable

 

23,480

 

(1,321)

 

(10,172)

(Decrease) increase in accrued expenses

 

(527)

 

2,332

 

(1,229)

Decrease in deferred voyage revenue

 

(1,486)

 

(3,961)

 

(5,032)

Decrease in long term liability

 

(1,318)

 

(275)

 

(451)

Increase (decrease) in derivative accounts

 

10,937

 

1,505

 

(4,523)

Payments for dry dock and special survey costs

 

(2,480)

 

(1,710)

 

-

Net cash provided by operating activities

 

56,432

 

24,371

 

71,945

 

 

 

 

 

 

 

INVESTING ACTIVITIES:

 

 

 

 

 

 

Deposit on exercise of vessel purchase options

 

(2,055)

 

(8,322)

 

-

Acquisition of vessels

 

(108,117)

 

(110,831)

 

-

Purchase of property and equipment

 

(1,291)

 

(294)

 

(4,264)

Proceeds from sale of fixed assets

 

-

 

-

 

-

Net cash used in investing activities

 

(111,463)

 

(119,447)

 

(4,264)

 

 

 

 

 

 

 

FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from long term loan

 

117,153

 

105,900

 

-

Proceeds from senior notes, net of discount

 

297,956

 

-

 

-

Repayment of long term debt  and payment of principal

 

(340,453)

 

(126,870)

 

(50,506)

Repayment of shareholders loan

 

-

 

(8,622)

 

-

Debt issuance costs

 

(7,775)

 

(3,787)

 

-

Issuance of common stock

 

65,453

 

-

 

-

Dividends paid

 

(15,382)

 

-

 

-

Cash received from downstream merger

 

-

 

102,259

 

-

Net cash provided (used in)  by financing activities

 

116,952

 

68,880

 

(50,506)

Increase (decrease) in cash and cash equivalents

 

61,921

 

(26,196)

 

17,175

Cash and cash equivalents, beginning of year

 

37,737

 

63,933

 

46,758

Cash and cash equivalent, end of year

$

99,658

$

37,737

$

63,933

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

 

 

 

 

 

 

Cash paid for interest

$

38,917

$

9,932

$

2,358













-10-





Disclosure of Non-GAAP Financial Measures


EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. 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 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 Company's ability to satisfy its obligations including debt service, capital expenditures, working capital requirements and determination 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.


EBITDA Reconciliation to Cash from Operations


Three Months Ended December 31,

(in thousands of US Dollars)


 

 

Successor December 31, 2006

 

Successor December 31, 2005

 

 

 

 

 

Net cash provided by operating activities

$

12,435

$

24,913

Net increase (decrease) in operating assets

 

8,308

 

(417)

Net decrease in operating liabilities

 

(4,054)

 

(5,917)

Net interest cost

 

15,569

 

7,793

Deferred finance charges

 

(6,215)

 

(1,094)

Provision for losses on accounts receivable

 

(5,963)

 

(404)

Unrealized loss on FFA derivatives, FECs and interest rate swaps

 


(1,244)

 


(7,961)

Earnings in affiliates, net of dividends received

 

148

 

157

Payments for drydock and special survey

 

-

 

1,696

EBITDA

$

18,984

$

18,766

Provision for losses on accounts receivable

 

5,361

 

-

EBITDA excluding one time charge

 

24,345

 

18,766


Year ended December 31,

(in thousands of US Dollars)


 

 

Successor Year

ended December 31, 2006

 

Successor August 26, 2005 to December 31, 2005

 

Predecessor January 1, 2005 to August 26, 2005

 

 

 

 

 

 

 

Net cash provided by operating activities

$

56,432

$

24,371

$

71,945

Net increase (decrease) in operating assets

 

33,065

 

5,864

 

(14,525)

Net (increase) decrease in operating liabilities

 

(31,086)

 

1,721

 

21,407

Net interest cost

 

43,597

 

10,729

 

327

Deferred finance charges

 

(8,004)

 

(1,253)

 

(425)

Provision for losses on accounts receivable

 

(6,024)

 

(411)

 

880

Unrealized gain (loss) on FFA derivatives, FECs and interest rate swaps

 


12,625

 


(16,479)

 


(23,728)

Earnings in affiliates, net of dividends received

 

92

 

285

 

(185)

Payments for drydock and special survey costs

 

2,480

 

1,710

 

-

EBITDA

$

103,177

$

26,537

$

55,696

Provision for losses on accounts receivable

 

5,361

 

-

 

-

EBITDA excluding one time charge

 

108,538

 

26,537

 

55,696



-11-








EXHIBIT 2


FLEET EMPLOYMENT PROFILE (CORE FLEET):



Owned Vessels

 

 

 

 

 

 

 

 

 

 

 

Vessels

Type

Built

DWT

Charter Rate (1)

Expiration Date (2)

 

 

 

 

 

 

Navios Ionian

Ultra Handymax

2000

52,068

15,152

03/29/2007

 

 

 

 

22,219

03/29/2009

Navios Apollon

Ultra Handymax

2000

52,073

16,150

09/28/2007

Navios Horizon

Ultra Handymax

2001

50,346

14,725

06/16/2008

Navios Herakles

Ultra Handymax

2001

52,061

15,437

03/28/2007

Navios Achilles

Ultra Handymax

2001

52,063

21,138

01/15/2009

Navios Meridian

Ultra Handymax

2002

50,316

14,250

08/23/2007

Navios Mercator

Ultra Handymax

2002

53,553

19,950

12/15/2008

Navios Arc

Ultra Handymax

2003

53,514

15,438

04/22/2007

Navios Hios

Ultra Handymax

2003

55,180

24,035

11/15/2008

Navios Kypros

Ultra Handymax

2003

55,222

16,844

05/13/2007

Navios Gemini S

Panamax

1994

68,636

19,523

12/21/2008

Navios Libra II

Panamax

1995

70,136

21,613

09/14/2008

Navios Felicity

Panamax

1997

73,867

9,405

04/25/2008

Navios Magellan

Panamax

2000

74,333

14,963

05/09/2007

 

 

 

 

19,950

04/01/2008

Navios Galaxy I

Panamax

2001

74,195

24,062

01/25/2008

Navios Star

Panamax

2002

76,662

21,375

01/21/2010

Navios Alegria

Panamax

2004

76,466

19,475

08/09/2008

Navios Hyperion (4)

Panamax

2004

75,707

26,268

02/26/2009


Long Term Chartered-in Vessels

 

 

 

 

 

 

 

 

 

 

 

 

Vessels

Type

Built

DWT

Purchase Option

Charter Rate (1)

Expiration Date (2)

 

 

 

 

 

 

 

Navios Vector

Ultra Handymax

2002

50,296

No

8,811

10/17/2007

Navios Astra

Ultra Handymax

2006

53,468

Yes

17,100

06/01/2007

Navios Cielo

Panamax

2003

75,834

No

25,175

11/14/2008

Navios Orbiter

Panamax

2004

76,602

Yes

24,700

02/23/2009

Navios Aurora

Panamax

2005

75,397

Yes

24,063

07/06/2008

Navios Orion

Panamax

2005

76,602

No

27,312

03/01//2009

Navios Titan

Panamax

2005

82,936

No

20,000

11/24/2007

Navios Sagittarius

Panamax

2006

75,756

Yes

25,413

12/23/2008

Navios Altair

Panamax

2006

83,001

No

22,175

09/20/2009

 

 

 

 

 

 

 


Long Term Chartered-in Vessels to be delivered

 

 

 

 

 

 

 

Vessels

Type

To Be Delivered

Purchase Option

DWT

 

 

 

 

 

Navios Primavera  (3)

Ultra Handymax

05/2007

Yes

53,500

Navios Prosperity

Panamax

06/2007

Yes

83,000

Navios Esperanza

Panamax

09/2007

No

75,200

Navios TBN

Panamax

03/2008

Yes

76,500

Navios TBN

Ultra Handymax

05/2008

No

55,100

Navios TBN

Panamax

09/2011

Yes

80,000



(1)

Time Charter Rate per day net of commissions

(2)

Estimated dates assuming midpoint of redelivery period by charterers

(3)

The vessel has been chartered-out from May 2007 for a three year period at a daily rate of $20,046 (net of commissions).

(4)

The vessel was acquired on February 26, 2007. Previously it was employed under Navios’ long-term chartered-in fleet






-12-





EXHIBIT 3




KLEIMAR – FLEET PROFILE

 

Type

% owned

DWT

Built

 

 

 

 

 

Owned Vessels

 

 

 

 

 

 

 

 

 

Obeliks

Cape

95% 1

170,454

2000

Asteriks

Panamax

50%

76,801

2005

Vanessa

Product

100%

19,078

2002

 

 

 

 

 

1. contracted to be sold for $24.2 million in 2009

 

 

 

 

 


 


Type


DWT


Built


Delivery

Purchase Option

 

 

 

 

 

 

Long-term Chartered-in Vessels

 

 

 

 

 

 

 

 

 

Beaufiks

Cape

180,310

2004

06/24/04

Yes

Fantastiks

Cape

180,265

2005

03/31/05

Yes

Rubena N

Cape

203,233

2006

01/11/06

 

SA Fortius

Cape

171,595

2001

03/06/03

 

Belisland

Panamax

76,602

2003

11/09/05

 

Ocean Premier

Handysize

27,411

1996

02/23/04

 

 

 

 

 

 

 

Long-term Chartered-in Vessels to be Delivered

 

 

 

 

 

 

Golden Heiwa

Panamax

76,662

2007

03/15/07

 

Tsuneishi TBN

Panamax

75,250

2008

03/15/08

 

Namura TBN

Cape

176,800

2010

04/15/10

 





-13-