Navios Revenue Up 25% in 3Q 2014
Highlights of Navios Maritime Holdings Inc. Financial Results for the Third Quarter and Nine Months Ended September 30, 2014:
25% increase to $152.6 million for Q3;
10% increase to $420.2 million for nine months
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. 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."
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.
In November 2014, Navios Midstream completed its initial public offeringof 8,100,000 common units. Navios Maritime Acquisition Corporation 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.
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.
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.
In November 2014, Navios Holdings received $7.5 million from Navios Partners representing the cash distribution for the third quarter of 2014.
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.
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.