* Navios delivers 67.5% year-over-year EBITDA growth PIRAEUS,
Greece, June 7 /PRNewswire-FirstCall/ -- Maritime Holdings Inc.
("Navios") (NASDAQ:BULKNASDAQ:BULKUNASDAQ:BULKW), a vertically
integrated global shipping company specializing in the dry-bulk
shipping industry, today reported its financial results for the
first quarter ended March 31, 2006. For the following results and
the selected financial data presented herein, Navios has compiled
consolidated statements of operations for the three month periods
ended March 31, 2006 (successor) and 2005 (predecessor). Both the
2006 and 2005 information was derived from unaudited financial
statements. The successor period in the consolidated statement of
operations is not directly comparable to the predecessor period
because it includes the effects of fair value purchase accounting
adjustments, which however, do not affect EBITDA. First Quarter
2006 results (in 000's of US Dollars): Successor Predecessor Three
Months ended Three Months ended March 31, 2006 March 31, 2005
(Unaudited) (Unaudited) Revenue 49,169 61,365 EBITDA 24,597 14,688
Net Income 4,982 12,964 Navios earns revenue from both owned and
chartered-in vessels, contracts of affreightment and port terminal
operations. Revenue for the three month period ended March 31, 2006
was $49.2 million as compared to $61.4 million for the same period
of 2005. This decrease is mainly attributable to (a) the redelivery
of chartered-in vessels during 2005 and the first quarter of 2006,
following the expiration of these charters, which was partially
mitigated by the increase in the number of vessels owned by the
Company (see "Fleet Employment Profile") and (b) a decline in the
freight market, resulting in lower charter-out daily hire rates in
the first quarter of 2006 as compared to those of the same period
in 2005. The available days for the fleet declined 1.8% from 2,434
days in 2005 to 2,390 days in 2006 and the achieved TCE (Time
Charter Equivalent) rate per day, excluding Forward Freight
Agreements (FFAs), decreased 19.5% from $22,153 per day in the
three month period ended March 31, 2005 to $17,835 per day for the
same period in 2006. Revenue from port terminal operations for the
first quarter of 2006 was $1.0 million as compared to $1.3 million
in the same period of 2005. This is attributable to the decreased
throughputs in the first quarter of 2006 of 325,000 tons as
compared to 334,000 tons in the same period of 2005. EBITDA was
$24.6 million for the first quarter of 2006 as compared to $14.7
million for the same period of 2005. This $9.9 million increase in
EBITDA is mainly attributable to (a) a gain in Forward Freight
Agreement ("FFA") trading of $1.7 million in the first quarter of
2006 versus a $4.6 million loss in the same period last year,
resulting in a favorable FFA variance of $6.2 million, and (b) a
reduction in time charter and voyage expenses from $37.5 million in
the first quarter of 2005 to $20.8 million in the same period of
2006. This was mainly due to the redelivery of higher cost
chartered-in vessels and the exercise of purchase options that
resulted in expansion of the owned fleet. The 44.6% reduction in
time charter and voyage expenses more than offsets the decline in
revenues as discussed above and increase in direct vessel expenses
due to the expansion of the owned fleet from six vessels in the
first quarter of 2005 to 15 vessels for the same period in 2006.
Net income for the first quarter ended March 31, 2006 was $5.0
million as compared to $13.0 million for the comparable period of
2005. In addition to the matters discussed above, the following
also contributed to the decrease of net income: (a) a $3.3 million
increase in depreciation due to the expansion of the owned fleet
arising from new acquisitions and exercise of purchase options, as
well as purchase accounting adjustments following the acquisition,
(b) a $5.3 million increase in amortization costs related to the
intangible assets established on the Company's balance sheet as
part of the of the acquisition in accordance with purchase
accounting principles under US GAAP and (c) an $8.7 million
increase in interest expense due to the increased indebtedness used
to finance the acquisition of the Company and the purchase of nine
additional vessels. Navios' cash and cash equivalents balance at
March 31, 2006 was $31.8 million. Dividend: Navios' Board of
Directors has approved the Company's quarterly cash dividend of
$0.0666 per common share, payable on July 5, 2006 to stockholders
of record as of June 15, 2006. Strategic Logistics Initiative:
Navios today announced that it intends to build a South American
logistics business by acquiring and building assets complementary
to Navios's port terminal and storage facilities in Nueva Palmira
in Uruguay. Navios's initial focus will be on the area extending
from Brazil to Uruguay on the Paraguay and Parana rivers. Navios
intends to expand the capacities and capabilities of Navios's
existing port terminal and storage facilities. Navios's strategy is
to capitalize on the region's growing agricultural and mineral
exports, the cost effectiveness of river transport as compared to
available alternatives and Navios's existing transportation
infrastructure. Angeliki Frangou said, "I am very excited about
launching this logistics business. We are using a historical asset
as the foundation for a new and exciting business that seeks to
capitalize on prevailing trends in global trade. We anticipate
building the core of this business over the course of the next
twelve months and believe that when operational, the business will
further provide diversity and create additional shareholder value
as we will be further distinguished as a global vertically
integrated shipping company." Warrant Exercise: Today, Navios
raised gross proceeds of approximately $65.5 million from the
exercise of warrants. Under the agreements with certain
shareholders, the exercise price of the previously outstanding
warrants was reduced from $5.00 per share to $4.10 per share and
15,978,280 shares of restricted common stock were issued. Navios
has agreed to file a registration statement, registering the resale
of such common stock by August 25, 2006, subject to certain
penalties for failure to meet the deadline. To comply with
applicable securities laws, the transaction was limited to certain
institutional holders and Navios's Chairman and principal
stockholder. The exercise price for all warrants other than the
warrants effected in this transaction remains at $5.00 per share.
Ms. Frangou, Navios's Chairman and principal stockholder,
participated in this transaction and paid approximately $27.3
million to the Company to exercise 6,666,280 warrants. Ms.
Frangou's unregistered shares will only be able to be sold pursuant
to an exemption from registration. Giving effect to these warrant
exercises, Navios currently has 61,379,134 shares outstanding and
49,521,720 warrants outstanding. The shares outstanding do not
include an additional 708,993 shares being issued to the Company's
financial advisors. These shares initially will be unregistered and
will be issued on or after June 16, 2006. Summary Fleet Data: The
following table reflects certain key indicators indicative of the
Company's and its fleet performance for the three month periods
ended March 31, 2006 and 2005. Successor Predecessor Three Months
ended Three Months ended March 31, 2006 March 31, 2005 (Unaudited)
(Unaudited) Available Days 2,390 2,434 Operating Days 2,385 2,410
Fleet Utilization 99.78% 99.02% Time Charter Equivalent including
FFAs 18,530 20,277 Time Charter Equivalent excluding FFAs 17,835
22,153 Available days: We define available days for the fleet as
the number of the total calendar days the vessels were in our
possession for the relevant period, after subtracting off-hire days
associated with major repairs and scheduled dry-docks 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 to generating revenues. Operating days: We define operating
days as the number of available days in the relevant period less
the aggregate number of days that our 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 period during which vessels actually generate revenues.
Fleet utilization: We define fleet utilization as the percentage of
time that our vessels were available for revenue generating, and is
calculated by dividing the number of our operating days during the
relevant period by the number of the available days during that
period. The shipping industry uses fleet utilization to measure a
company's efficiency in finding suitable employment for its
vessels. Time Charter Equivalent (TCE): We define TCE per ship per
day rate as our voyage and time charter revenues less voyage
expenses during the relevant period divided by the number of our
available days during that period, which is consistent with
industry standards. TCE rate is a shipping industry performance
measure used primary to compare daily earnings generated by vessels
on time charters with daily earning generated by vessels on voyage
charters, because charter hire for vessels on voyage charters are
generally not expressed in per day amounts while charter hire rates
for vessels on time charters are generally expressed in such
amounts. Fleet Employment Profile: Following is the "core fleet"
employment profile, including newbuildings to be delivered. The
"core fleet" includes the owned vessels and the long term
chartered-in vessels. Navios' core fleet consists of a total of 32
vessels, totaling 2.10 million deadweight tones. Seven of these
vessels are scheduled to be delivered to the fleet within the next
two years. Currently, the Company operates a fleet of 25 vessels of
which 16 are owned and nine are chartered-in under long term time
charters. These vessels aggregate approximately 1.61 million
deadweight tons and have an average age of 4.3 years. Navios has
currently fixed 87.6 % and 24.0% of its available days on a charter
out basis for 2006 and 2007 respectively, equivalent to $138.2
million and $43.2 million in revenue, respectively. The average
daily charter-out rate for the fleet is $17,242 for 2006. The
current average daily charter-in rate for the active long term
chartered-in vessels is $9,402. Owned Vessels Vessels Type Built
DWT Charter Expiration Rate(1) Date(2) Navios Ionian Ultra Handymax
2000 52,068 15,152 01/25/2007 Navios Apollon Ultra Handymax 2000
52,073 16,150 08/21/2007 Navios Horizon Ultra Handymax 2001 50,346
14,725 04/30/2008 Navios Herakles Ultra Handymax 2001 52,061 15,437
02/19/2007 Navios Achilles Ultra Handymax 2001 52,063 15,533
10/08/2006 Navios Meridian Ultra Handymax 2002 50,316 20,045
10/15/2006 Navios Mercator Ultra Handymax 2002 53,553 21,175
10/01/2006 Navios Arc Ultra Handymax 2003 53,514 15,438 03/15/2007
Navios Hios Ultra Handymax 2003 55,180 19,237 09/15/2006 Navios
Kypros Ultra Handymax 2003 55,222 16,844 04/05/2007 Navios Gemini S
Panamax 1994 68,636 16,150 09/21/2006 Navios Libra II Panamax 1995
70,136 17,385 07/12/2006 Navios Felicity Panamax 1997 73,857 9,144
03/25/2007 Navios Magellan Panamax 2000 74,333 14,963 02/23/2007
Navios Galaxy I Panamax 2001 74,195 24,062 12/25/2007 Navios
Alegria Panamax 2004 76,466 23,750 08/03/2006 Long Term
Chartered-in Vessels Vessels Type Built DWT Purchase Charter
Expiration Option(3) Rate(1) Date(2) Navios Ultra Vector Handymax
2002 50,296 No 8,811 12/17/2007 Navios Ultra Astra Handymax 2006
53,400 Yes 17,100 04/19/2007 Navios Star Panamax 2002 76,662 Yes
15,343 01/13/2007 Navios Cielo Panamax 2003 75,834 No 16,863
08/30/2006 Navios Hyperion Panamax 2004 75,500 Yes 15,400
01/05/2007 Navios Orbiter Panamax 2004 76,602 Yes 16,150 10/16/2006
Navios Aurora Panamax 2005 75,200 Yes 24,063 05/27/2008 Navios
Orion Panamax 2005 76,000 No 21,175 01/15/2007 Navios Titan Panamax
2005 82,936 No 20,000 10/09/2007 Long Term Chartered-in Vessels on
Order Vessels Type To Be Built Purchase DWT Option Navios Altair
Panamax 09/2006 No 82,300 Navios Sagittarius Panamax 11/2006 Yes
75,500 Navios TBN Ultra Handymax 04/2007 Yes 53,500 Navios TBN
Panamax 09/2007 Yes 82,000 Navios TBN Panamax 11/2007 No 75,200
Navios TBN Panamax 03/2008 Yes 76,500 Navios TBN Ultra Handymax
05/2008 No 55,100 (1) Time Charter Revenue Rate per day net of
commissions (2) Estimated dates assuming earliest redelivery by
charterers Conference Call and Webcast: As already announced,
today, Wednesday, June 7, 2006 at 8:30 AM EST, the Company's
management will host a conference call to discuss the results.
Conference Call Details: Participants should dial into the call 10
minutes before the scheduled time using the following numbers:
(888) 802-8574 (from the US) or (973) 628-6885 (from outside the
US). Pass Code: 7440447. A telephonic replay of the conference call
will be available until Wednesday, June 14, 2006; 11:59 PM EST, by
dialing (877) 519-4471 (from the US) or (973) 341-3080 (from
outside the US). Pass Code: 7440447 Webcast: This call will
simultaneously be Webcast at the following Web address:
http://www.videonewswire.com/event.asp?id=34144 The Webcast will be
archived and available at this same Web address for one year
following the call. ABOUT NAVIOS MARITIME 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 owns and operates a fleet of ten Ultra
Handymax and six Panamax vessels. It also time charters-in and
operates a fleet of two Ultra Handymax and seven Panamax vessels
that are employed to provide worldwide transportation of bulk
commodities. 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 owned fleet has a total capacity of 964,019 dwt and an
average age of approximately 5.6 years. Of the nine chartered-in
vessels, currently in operation, Navios has options to acquire five
of them. Furthermore, it also has seven long term chartered-in
vessels on order which are expected to be delivered at various
dates from September 2006 to May 2008. Navios has options to
purchase four of the seven long term chartered-in vessels. 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. NAVIOS
MARITIME HOLDINGS INC. CONSOLIDATED BALANCE SHEETS (expressed in
thousands of US Dollars) Successor Successor March 31, December 31,
2006 2005 (unaudited) (audited) ASSETS Current Assets Cash and cash
equivalents $31,774 $37,737 Restricted cash 6,792 4,086 Accounts
receivable, net 5,296 13,703 Short term derivative assets 31,577
45,556 Short term backlog assets 6,320 7,019 Prepaid expenses and
other current assets 7,207 6,438 Total current assets 88,966
114,539 Deposit on exercise of vessels purchase options 1,666 8,322
Vessels, port terminal and other fixed assets, net 471,686 365,997
Long term derivative assets 169 28 Deferred financing costs, net
11,024 11,677 Deferred dry dock and special survey costs, net 3,317
2,448 Investments in affiliates 356 657 Long term back log asset
6,450 7,744 Trade name 88,320 89,014 Port terminal operating rights
30,538 30,728 Favorable lease terms and purchase options 88,384
117,440 Goodwill 40,789 40,789 Total non-current assets 742,699
674,844 Total Assets $831,665 $789,383 LIABILITIES AND
STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $10,069
$13,886 Accrued expenses 6,570 11,253 Deferred voyage revenue 5,540
6,143 Short term derivative liability 23,825 39,992 Short term
backlog liability 8,109 8,109 Current portion of long term debt
60,086 54,221 Total current liabilities 114,199 133,604 Long term
debt, net of current portion 496,256 439,179 Long term liabilities
2,099 2,297 Long term derivative liability 313 598 Long term
backlog liability 3,947 5,947 Total non-current liabilities 502,615
448,021 Total liabilities 616,814 581,625 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 45,400,854 5 4 Additional paid-in capital 210,727
205,593 Retained earnings 4,119 2,161 Total stockholders' equity
214,851 207,758 Total Liabilities and Stockholders' Equity $831,665
$789,383 NAVIOS MARITIME HOLDINGS INC. CONSOLIDATED STATEMENTS OF
OPERATIONS (expressed in thousands of US Dollars - except per share
data) Successor Predecessor Three Month Three Month Period Ended
Period Ended March 31, 2006 March 31, 2005 (unaudited) (unaudited)
Revenue $49,169 $61,365 Gain (loss) on Forward Freight Agreements
1,662 (4,567) Time charter, voyage and port terminal expenses
(20,767) (37,469) Direct vessel expenses (4,164) (2,110) General
and administrative expenses (3,596) (3,644) Depreciation and
amortization (10,120) (1,489) Interest income 468 302 Interest
expense and finance cost, net (9,206) (475) Other income 1,425 971
Other expense (43) (222) Income before equity in net earning of
affiliate companies 4,828 12,662 Equity in net Earnings of
Affiliated Companies 154 302 Net income $4,982 $12,964 Earnings per
share, basic $0.11 $14.82 Weighted average number of shares, basic
45,336,324 874,584 Earnings per share, diluted $0.11 $14.82
Weighted average number of shares, diluted 45,336,324 874,584
NAVIOS MARITIME HOLDINGS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS
(expressed in thousands of US Dollars) Successor Predecessor March
31, 2006 March 31, 2005 (unaudited) (unaudited) OPERATING
ACTIVITIES Net income $4,982 $12,964 Adjustments to reconcile net
income to net cash provided by operating activities: Depreciation
and amortization 10,120 1,489 Amortization of deferred financing
cost 653 13 Amortization of deferred dry dock costs 263 62
Amortization of backlog 494 - Provision for losses on accounts
receivable - (912) Unrealized (gain)/loss on FFA derivatives
(1,878) 16,905 Unrealized loss on foreign exchange contracts - 197
Unrealized (gain)/loss on interest rate swaps (926) (612) Earnings
in affiliates, net of dividends received 301 180 Changes in
operating assets and liabilities: Increase in restricted cash
(2,706) (1,474) Decrease (increase) in accounts receivable 8,407
(1,565) (Increase) in prepaid expenses and other (769) (7,300)
(Decrease) in accounts payable (3,817) (689) (Decrease) in accrued
expenses (4,683) (2,639) (Decrease) increase in deferred voyage
revenue (603) 3,807 (Decrease) in long term liability (198) (235)
Increase (decrease) in derivative liability 189 (2,014) Payments
for drydock and special survey costs (1,132) - Net cash provided by
operating activities 8,697 18,177 INVESTING ACTIVITIES: Acquisition
of vessels (73,652) - Purchase of property and equipment (927)
(1,656) Net cash used in investing activities (74,579) (1,656)
FINANCING ACTIVITIES: Proceeds from long term loan 77,964 -
Repayment of long term debt (15,022) (250) Dividends paid (3,023) -
Net cash provided (used in) by financing activities 59,919 (250)
(Decrease) increase in cash and cash equivalents (5,963) 16,271
Cash and cash equivalents, beginning of year 37,737 46,758 Cash and
cash equivalent, end of year $31,774 $63,029 SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION Cash paid for interest $8,581
$765 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: (in thousands of US Dollars) Successor
Predecessor March 31, 2006 March 31, 2005 (unaudited) (unaudited)
Net cash provided by operating activities $8,697 $18,177 Net
(decrease) increase in operating assets (4,932) 10,339 Net decrease
in operating liabilities 9,112 1,770 Net interest cost 8,738 173
Deferred finance charges (653) (13) Provision for losses on
accounts receivable - 912 Unrealized gain (loss) on FFA
derivatives, FECs and interest rate swaps 2,804 (16,490) Earnings
in affiliates, net of dividends received (301) (180) Payments for
drydock and special survey costs 1,132 - EBITDA $24,597 $14,688
Public & Investor Relations Contact: Navios Maritime Holdings
Inc. Investor Relations 212-279-8820 DATASOURCE: Navios Maritime
Holdings Inc. CONTACT: Navios Maritime Holdings Inc., Investor
Relations, +1-212-279-8820,
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