Navios Maritime Holdings Inc. (“Navios Holdings” or “the Company”) (NYSE: NM), a global seaborne shipping and logistics company, today reported financial results for the second quarter and six month period ended June 30, 2020.

Angeliki Frangou, Chairman and Chief Executive Officer, stated, “The pandemic has greatly affected businesses, countries, and people all over the world, but the Navios family perseveres. We take great pride in adapting to this ever-changing environment while providing essential services to the global community. During the second quarter of 2020, Navios Holdings reported revenue of $97.1 million, Adjusted EBITDA of $27.2 million and a Time Charter Equivalent of $7,827 net per day. Year-to-Date 2020, the capesize 5TC daily rate is averaging around $10,600 versus the 2019 daily average of $18,000. Rates have been recovering over the past couple of months as countries emerge from quarantine with the current capesize 5TC rate around $20,000 per day.”

HIGHLIGHTS – RECENT DEVELOPMENTS

Liquidation of Navios Europe (II) Inc. (“Navios Europe II”)

On June 29, 2020, following the liquidation of Navios Europe II, Navios Holdings received $7.9 million cash and acquired two unencumbered Panamax dry bulk vessels, with their associated working capital.

Navios Logistics 2025 Senior Secured Notes

On July 8, 2020, Navios Logistics and its wholly-owned subsidiary Navios Logistics Finance (US) Inc. (“Logistics Finance” and, together with Navios Logistics, the “Logistics Co-Issuers”) issued $500.0 million in aggregate principal amount of Senior Secured Notes due on July 1, 2025 (the “2025 Senior Secured Notes”), at a fixed rate of 10.75%. The net proceeds from the offering of the Senior Secured Notes were used to satisfy and discharge the indenture governing the Logistics Co-Issuers’ outstanding 7.25% Senior Notes due 2022, to repay all amounts outstanding under the Logistics Co-Issuers’ Term Loan B Facility and to pay certain fees and expenses related to the offering, with the balance to be used for general corporate purposes.

NSM Loan

In June 2020, the Company entered into a secured loan agreement with Navios Shipmanagement Holdings Corporation, a wholly owned subsidiary of N Shipmanagement Acquisition Corp. (collectively “NSM”) for a loan of up to $50.0 million to be used for general corporate purposes. In the second quarter of 2020, the Company drew $31.5 million and in the third quarter of 2020, the Company drew the remaining $18.5 million.

Fleet

In August 2020, the Company sold to an unrelated third party the Navios Northern Star, a 2005-built Panamax vessel of 75,395 dwt, for a sale price of $7.0 million.

In June 2020, the Company agreed to sell to an unrelated third party the Navios Amitie, a 2005-built Panamax vessel of 75,395 dwt, for a sale price of $7.1 million. The sale is expected to be completed within Q3 2020.

Fleet statistics

Navios Holdings controls a fleet of 52 vessels totaling 5.7 million dwt, of which 35 are owned (including five bareboat-in vessels and one Panamax vessel agreed to be sold) and 17 are chartered-in under long-term charters (collectively, the "Core Fleet"). The fleet consists of 17 Capesize, 28 Panamax, five Ultra-Handymax and two Handysize vessels, with an average age of 7.7 years.

Navios Holdings has currently chartered-out 84.7% of available days for the remaining six months of 2020. Of these available days, 48.7% are chartered-out on fixed rate and 36.0% are chartered-out on index. The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining six months of 2020 is $12,416 per day.

The above figures do not include the fleet of Navios South American Logistics Inc. (“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.

Non-GAAP Measures

EBITDA, Adjusted EBITDA, Adjusted Net Loss attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders 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, Adjusted EBITDA, Adjusted Net Loss attributable to Navios Holdings’ common stockholders and Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share of Navios Holdings (including Navios Logistics), and EBITDA of Navios Logistics (on a stand-alone basis) and a reconciliation of such measures to the most comparable measures calculated under U.S. GAAP.

As of November 30, 2018, Navios Holdings obtained control over Navios Maritime Containers L.P. (“Navios Containers”) and consequently consolidated Navios Containers from that date onwards. Following the sale of Navios Containers general partnership interest on August 30, 2019, Navios Holdings deconsolidated Navios Containers from that date onwards. The results of operations of Navios Containers for the three and six month periods ended June 30, 2019 consolidated under Navios Holdings have been reported as discontinued operations.

Earnings Highlights

Second Quarter 2020 and 2019 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The second quarter 2020 and 2019 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

           
    Three Month Period      Three Month Period 
    Ended     Ended
    June 30, 2020      June 30, 2019
    (unaudited)     (unaudited) 
Revenue $ 97,127     $ 113,511 (5)
Net Loss attributable to Navios Holdings’ common stockholders $ (35,271 )   $ (36,431 )
Adjusted Net Loss attributable to Navios Holdings’ common stockholders $ (25,032 )(1)   $ (1,580 )(3)
Net cash provided by operating activities $ 7,012     $ 24,353  
EBITDA $ 16,945     $ 30,783  
Adjusted EBITDA $ 27,184 (1)   $ 52,788 (2)
Basic Loss attributable to Navios Holdings’ common stockholders per share $ (2.83 )   $ (1.49 )
Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share $ (2.04 )(1)   $ (0.29 )(4)
(1) Adjusted EBITDA, Adjusted Net Loss and Adjusted Basic Loss per share attributable to Navios Holdings’ common stockholders for the three month period ended June 30, 2020 exclude (i) $9.0 million in impairment losses relating to two drybulk vessels; and (ii) $1.3 million in non-cash vessel impairment losses incurred by our affiliate companies.
(2) Adjusted EBITDA for the three month period ended June 30, 2019 excludes (i) $18.3 million of impairment losses due to the sale of four drybulk vessels; (ii) $13.5 million of other-than-temporary impairment (“OTTI”) loss related to our investment in an affiliate company; and (iii) $9.8 million of EBITDA previously included as a result of Navios Containers’ consolidation during the period.
(3) Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the three month period ended June 30, 2019 excludes (i) $18.3 million of impairment losses due to the sale of four drybulk vessels; (ii) $13.5 million OTTI loss related to our investment in an affiliate company; and (iii) $3.1 million of net loss from discontinued operations of Navios Containers.
(4) Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share for the three month period ended June 30, 2019 excludes the items referred in footnote (3) above as well as a gain of $20.2 million related to the tender offer for the Company’s preferred stock and the conversion of accrued dividends on private preferred stock to common stock.
(5) Revenue has been revised to exclude the revenue of Navios Containers as this has been reported within net loss from discontinued operations of Navios Containers for the three month period ended June 30, 2019.
   

Revenue from dry bulk vessel operations for the three month period ended June 30, 2020 decreased by $14.6 million, or 27.6%, to $38.3 million, as compared to $52.9 million for the same period during 2019. The decrease in dry bulk revenue was mainly attributable to a decrease in available days by 8.8%, due to the vessels sold and certain charter-in vessels that were redelivered partially mitigated by the delivery of the five bareboat-in vessels, and the decline in freight and time charter market during the periods compared. The TCE per day decreased by 25.5% to $7,827 per day in the second quarter of 2020, as compared to $10,500 per day in the same period of 2019.

Revenue from the logistics business was $58.8 million for the three month period ended June 30, 2020 as compared to $60.6 million for the same period in 2019. The decrease was mainly attributable to (i) a $4.6 million decrease in revenue from the barge business, mainly due to less revenue from time charter contracts; and (ii) a $0.6 million decrease in revenue from the cabotage business. The overall decrease was partially offset by a $3.4 million increase in revenue from the port terminal business, mainly due to higher volumes transshipped in the grain port terminal and an increase in the Paraguayan liquid port’s volumes of products sold.

Net Loss attributable to Navios Holdings’ common stockholders was $35.3 million for the three month period ended June 30, 2020, as compared to $36.4 million for the same period in 2019. Net Loss attributable to Navios Holdings’ common stockholders was affected by items described in the table above. Excluding these items, Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the three month period ended June 30, 2020 was $25.0 million, as compared to $1.6 million for the same period in 2019. This increase in Adjusted Net Loss was mainly due to (i) a $25.6 million decrease in Adjusted EBITDA as discussed in the paragraph below; and (ii) a $1.2 million increase in interest expense and finance cost, net. This overall increase of $26.8 million was partially mitigated by (i) a $2.8 million decrease in depreciation and amortization; (ii) a $0.4 million decrease in share-based compensation expense; (iii) a $0.1 million decrease in amortization for deferred drydock and special survey costs; and (iv) a $0.1 million decrease in income tax expense.

Net Income of Navios Logistics, on a standalone basis, was $12.0 million for the three month period ended June 30, 2020 as compared to $9.7 million for the same period in 2019.

Net Loss of Navios Containers, on a standalone basis, was $3.1 million for the three month period ended June 30, 2019.

Adjusted EBITDA of Navios Holdings for the three month period ended June 30, 2020 decreased by $25.6 million to $27.2 million, as compared to $52.8 million for the same period in 2019. The decrease in Adjusted EBITDA was primarily due to (i) a $16.4 million decrease in revenue; (ii) a $13.1 million decrease in other income, net; (iii) a $5.7 million decrease in gain on bond extinguishment; (iv) a $3.7 million increase in net income attributable to noncontrolling interest; (v) a $1.4 million increase in general and administrative expenses (excluding share-based compensation expenses); and (vi) a $0.3 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs). This overall decrease of $40.6 million was partially mitigated by (i) a $13.9 million increase in equity in net earnings from affiliated companies; and (ii) a $1.1 million decrease in time charter, voyage and logistics business expenses.

EBITDA of Navios Logistics, on a standalone basis, was $27.0 million for the three month period ended June 30, 2020, as compared to $27.5 million for the same period in 2019.

First Half of 2020 and 2019 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The information for the six month period ended June 30, 2020 and 2019 presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

           
    Six Month Period Ended     Six Month Period Ended
    June 30, 2020     June 30, 2019 
    (unaudited)     (unaudited)
Revenue $ 188,210     $ 221,959 (6)
Net Loss attributable to Navios Holdings’ common stockholders $ (88,546 )   $ (41,735 )
Adjusted Net Loss attributable to Navios Holdings’ common stockholders $ (48,787 )(1)   $ (1,114 )(4)
Net cash provided by operating activities $ 5,530     $ 42,676  
EBITDA $ 16,173     $ 93,785  
Adjusted EBITDA $ 55,932 (1)   $ 109,274 (3)
Basic Loss attributable to Navios Holdings’ common stockholders per share $ (7.06 )   $ (0.16 )
Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share $ (3.99 )(2)   $ (0.46 )(5)
(1) Adjusted EBITDA and Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the six month period ended June 30, 2020 exclude (i) $20.2 million in impairment losses relating to four drybulk vessels; (ii) $12.7 million OTTI loss and impairment losses of loan receivable in relation to Navios Europe II; (iii) $5.6 million in non-cash impairment losses incurred by our affiliate companies relating to their investment in Navios Europe II; and (iv) $1.3 million in non-cash vessel impairment losses incurred by our affiliate companies.
(2) Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share for the six month period ended June 30, 2020 excludes the items referred in footnote (1) above as well as a gain of $0.2 million related to the conversion of accrued dividends on private preferred stock to common stock.
(3) Adjusted EBITDA for the six month period ended June 30, 2019 excludes (i) $23.8 million of impairment losses related to the sale of five drybulk vessels; (ii) a $13.5 million OTTI loss related to our investment in an affiliate company; and (iii) $21.8 million of EBITDA previously included as a result of Navios Containers’ consolidation during the period.
(4) Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the six month period ended June 30, 2019 excludes (i) $23.8 million of impairment losses related to the sale of five drybulk vessels; (ii) a $13.5 million OTTI loss related to our investment in an affiliate company; and (iii) $3.3 million of net loss from discontinued operations of Navios Containers.
(5) Adjusted Basic Loss attributable to Navios Holdings’ common stockholders per share for the six month period ended June 30, 2019 excludes the items referred in footnote (4) above as well as a gain of $44.3 million related to the tender offer of the Company’s preferred stock and the conversion of accrued dividends on private preferred stock to common stock.
(6) Revenue has been revised to exclude the revenue of Navios Containers as this has been reported within net loss from discontinued operations of Navios Containers for the six month period ended June 30, 2019.
   

Revenue from dry bulk vessel operations for the six month period ended June 30, 2020 decreased by $33.0 million, or 31.3%, to $72.6 million, as compared to $105.6 million for the same period in 2019. The decrease in dry bulk revenue was mainly attributable to a decrease in available days by 11.1%, due to the vessels sold and certain charter-in vessels that were redelivered partially mitigated by the delivery of the five bareboat-in vessels, and the decline in freight and time charter market during the periods compared. The TCE per day decreased by 25.8% to $7,451 per day in the first half of 2020, as compared to $10,045 per day in the same period in 2019.

Revenue from the Logistics Business was $115.6 million for the six month period ended June 30, 2020 as compared to $116.4 million for the same period in 2019. The decrease was mainly attributable to (i) a $4.4 million decrease in revenue from the barge business mainly due to less revenue from time charter contracts; and (ii) a $0.7 million decrease in revenue from the cabotage business. The overall decrease was partially mitigated by a $4.3 million increase in revenue from port terminal business mainly due to an increase in the Paraguayan liquid port’s volumes of products sold and increased storage revenues in the iron ore terminal.

Net Loss attributable to Navios Holdings’ common stockholders was $88.5 million for the six month period ended June 30, 2020, as compared to $41.7 million for the same period in 2019. Net Loss attributable to Navios Holdings’ common stockholders was affected by items described in the table above. Excluding these items, Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the six month period ended June 30, 2020 was $48.8 million, as compared to $1.1 million for the same period in 2019. This increase in Adjusted Net Loss was mainly due to (i) a decrease in Adjusted EBITDA of $53.4 million; and (ii) an increase in interest expense and finance cost, net of $2.1 million. This overall increase in Adjusted Net Loss was partially mitigated by (i) a decrease in depreciation and amortization of $5.9 million; (ii) a $0.9 million decrease in share-based compensation expense; (iii) a decrease in income tax expense of $0.6 million; and (iv) a decrease of $0.4 million in amortization for deferred drydock and special survey costs.

Net Income of Navios Logistics, on a standalone basis, was $19.0 million for the six month period ended June 30, 2020, as compared to $15.0 million for the same period in 2019.

Net Loss of Navios Containers, on a standalone basis, was $3.3 million for the six month period ended June 30, 2019.

Adjusted EBITDA of Navios Holdings for the six month period ended June 30, 2020 decreased by $53.4 million to $55.9 million, as compared to $109.3 million for the same period in 2019. The decrease in Adjusted EBITDA was primarily due to (i) a $33.8 million decrease in revenue; (ii) a $20.0 million decrease in other income, net; (iii) a $10.2 million decrease in bond extinguishment gains; (iv) a $4.6 million increase in net income attributable to the noncontrolling interest; (v) a $1.8 million increase in direct vessel expenses (excluding the amortization of deferred drydock and special survey costs); and (vi) a $1.3 million increase in general and administrative expenses (excluding share-based compensation expenses). This overall decrease of $71.7 million was partially mitigated by (i) a $15.9 million increase in equity in net earnings from affiliated companies; and (ii) a $2.4 million decrease in time charter, voyage and logistics business expenses.

EBITDA of Navios Logistics, on a standalone basis, was $49.2 million for the six month period ended June 30, 2020, as compared to $51.7 million for the same period in 2019.

Fleet Summary Data:

The following table reflects certain key indicators indicative of the performance of Navios Holdings' dry bulk operations (excluding the Navios Logistics’ and Navios Containers’ fleets) and its fleet performance for the three and six month periods ended June 30, 2020 and 2019, respectively.

               
  Three Month   Three Month   Six Month   Six Month
  Period Ended   Period Ended   Period Ended   Period Ended
  June 30,   June 30,   June 30,   June 30,
  2020   2019   2020   2019
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
Available Days (1)   4,536     4,976     9,172     10,313
Operating Days (2)   4,507     4,959     9,104     10,271
Fleet Utilization (3)   99.4%     99.7%     99.3%     99.6%
Equivalent Vessels (4)   50     55     50     57
TCE (5) $ 7,827   $ 10,500   $ 7,451   $ 10,045
(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 scheduled repairs, drydocking or special surveys and ballast days relating to voyages. 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.
(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.
(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, August 20, 2020, at 8:30 am ET, at which time Navios Holdings' senior management will provide highlights and commentary on earnings results for the second quarter and six month period ended June 30, 2020.

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: Thursday, August 20, 2020 at 8:30 am ET Call Title: Navios Holdings Q2 2020 Financial Results Conference Call US Dial In: +1.877.480.3873 International Dial In: +1.404.665.9927 Conference ID: 548 8050

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: 548 8050

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 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 Containers L.P.

Navios Maritime Containers L.P. (NASDAQ: NMCI) is a growth vehicle dedicated to the container sector of the maritime industry. For more information, please visit its website at www.navios-containers.com.

About Navios Maritime Partners L.P.

Navios Maritime Partners L.P. (NYSE: NMM) is a publicly traded master limited partnership which owns and operates dry cargo vessels. For more information, please visit its website at www.navios-mlp.com.

About Navios Maritime Acquisition Corporation

Navios Maritime Acquisition Corporation (NYSE: NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. For more information about Navios Acquisition, please visit its website: www.navios-acquisition.com.

Forward Looking Statements - Safe Harbor

This press release and our earnings call contain and will contain 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, including expected cash flow generation, future contracted revenues, potential capital gains, our ability to take advantage of dislocation in the market and any market recovery, and Navios Holdings' growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as “may,” “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 revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by Navios Holdings at the time these statements were made. Although Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Holdings. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, risks relating to: global and regional economic and political conditions including the impact of the COVID-19 pandemic and efforts throughout the world to contain its spread, including effects on global economic activity; demand for seaborne transportation of the products we ship; the ability and willingness of charterers to fulfill their obligations to us; prevailing charter rates; shipyards performing scrubber installations, drydocking and repairs; changing vessel crews and availability of financing; potential disruption of shipping routes due to accidents, diseases, pandemics, political events, piracy or acts by terrorists, including the impact of the COVID-19 pandemic and the ongoing efforts throughout the world to contain it; uncertainty relating to global trade, including prices of seaborne commodities and continuing issues related to seaborne volume and ton miles; our continued ability to enter into long-term time charters; our ability to maximize the use of our vessels; expected demand in the dry cargo shipping sector in general and the demand for our Panamax, Capesize, Ultra Handymax and Handysize vessels in particular; the aging of our fleet and resultant increases in operations costs; the loss of any customer or charter or vessel; the financial condition of our customers; changes in the availability and costs of funding due to conditions in the bank market, capital markets and other factors; increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance, and general and administrative expenses; the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, general domestic and international political conditions; competitive factors in the market in which Navios Holdings operates; the value of our publicly traded subsidiaries; 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, including its Forms 20-F and Forms 6-K. 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. Navios Holdings makes no prediction or statement about the performance of its common stock or debt securities.

Contact:                               

Navios Maritime Holdings Inc.+1.212.906.8643investors@navios.com

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 MonthPeriod EndedJune 30, 2020   Three MonthPeriod EndedJune 30, 2019   Six MonthPeriod EndedJune 30, 2020   Six MonthPeriod EndedJune 30, 2019
  (unaudited)   (unaudited)   (unaudited)   (unaudited)
Revenue $ 97,127   $ 113,511   $ 188,210   $ 221,959
Administrative fee revenue from affiliates   6,318     12,782
Time charter, voyage and logistics business expenses (42,710)   (43,754)   (89,354)   (91,751)
Direct vessel expenses(1) (26,007)   (25,763)   (50,738)   (49,302)
General and administrative expenses incurred on behalf of affiliates   (6,318)     (12,782)
General and administrative expenses(2) (8,836)   (7,874)   (15,798)   (15,406)
Depreciation and amortization (18,012)   (20,755)   (36,088)   (41,980)
Interest expense and finance cost, net (31,418)   (30,163)   (63,061)   (61,007)
Impairment loss/ loss on sale of vessels, net (8,967)   (18,253)   (20,215)   (23,784)
Gain on bond extinguishment   5,712   11,204   21,374
Other (expense)/income, net (1,593)   11,449   (3,154)   16,758
Impairment of loan receivable from affiliated company     (6,050)  
Loss before equity in net earnings of affiliated companies $ (40,416)   $ (15,890)   $ (85,044)   $ (23,139)
Equity in net earnings/(losses) of affiliated companies 9,445   (16,779)   3,308   (12,502)
Loss before taxes $ (30,971)   $ (32,669)   $ (81,736)   $ (35,641)
Income tax benefit/(expense) 34   (143)   73   (548)
Net loss from continuing operations (30,937)   (32,812)   (81,663)   (36,189)
Net loss from discontinued operations   (3,055)     (3,294)
Net loss $ (30,937)   $ (35,867)   $ (81,663)   $ (39,483)
Less: Net income attributable to the noncontrolling interest (4,334)   (564)   (6,883)   (2,252)
Net loss attributable to Navios Holdings common stockholders $ (35,271)   $ (36,431)   $ (88,546)   $ (41,735)
Loss attributable to Navios Holdings common stockholders, basic and diluted $ (36,555)   $ (18,147)   $ (90,958)   $ (1,957)
Basic and diluted loss per share attributable to Navios Holdings common stockholders $ (2.83)   $ (1.49)   $ (7.06)   $ (0.16)
Weighted average number of shares, basic and diluted 12,901,880   12,219,750   12,882,235   12,219,817
(1) Includes expenses of Navios Logistics of $13.0 million and $14.7 million for the three month periods ended June 30, 2020 and 2019, respectively and $25.2 million and $27.3 million for the six month periods ended June 30, 2020 and 2019, respectively.
(2) Includes expenses of Navios Logistics of $3.2 million and $4.4 million for the three month periods ended June 30, 2020 and 2019, respectively and $6.5 million and $8.1 million for the six month periods ended June 30, 2020 and 2019, respectively.
   

NAVIOS MARITIME HOLDINGS INC.Other Financial Data

       
    June 30,2020    December 31,2019
ASSETS  (unaudited)   (unaudited)
Cash and cash equivalents, including restricted cash $ 55,072   $ 78,727
Vessels, port terminals and other fixed assets, net   1,298,997     1,276,514
Goodwill and other intangibles   261,703     264,490
Operating lease assets   265,460     264,005
Other current and non-current assets   234,692     259,119
Total assets $ 2,115,924   $  2,142,855
           
LIABILITIES AND EQUITY          
Long-term debt, including current portion $ 438,839   $ 392,568
Senior and ship mortgage notes, net   1,152,942     1,170,679
Operating lease liabilities, current portion   78,975     87,103
Operating lease liabilities, net of current portion   231,265     226,329
Other current and non-current liabilities   139,550     107,151
Total stockholders’ equity   74,353     159,025
Total liabilities and stockholders’ equity $ 2,115,924   $  2,142,855
           

Disclosure of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders and Adjusted Basic Earnings/(Loss) per share are “non-U.S. GAAP financial measures” and should not be used in isolation or considered substitutes for net income/(loss), 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.

EBITDA represents net income/(loss) attributable to Navios Holdings' common stockholders before interest and finance costs, before depreciation and amortization, before income taxes and before stock-based compensation. Adjusted EBITDA represents EBITDA, excluding certain items as described under “Earnings Highlights”. We use EBITDA and Adjusted EBITDA as liquidity measures and reconcile EBITDA and Adjusted EBITDA to net cash provided by operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA is calculated as follows: net cash provided by operating activities adding back, when applicable and as the case may be, the effect of (i) net increase/(decrease) in operating assets, (ii) net (increase)/decrease in operating liabilities, (iii) net interest cost, (iv) deferred finance charges and gains/(losses) on bond and debt extinguishment, (v) (provision)/recovery for losses on accounts receivable, (vi) equity in affiliates, net of dividends received, (vii) payments for drydock and special survey costs, (viii) noncontrolling interest, (ix) gain/ (loss) on sale of assets/ subsidiaries/businesses, on loss of control and bargain gain, (x) unrealized (loss)/gain on derivatives, (xi) loss on sale and reclassification to earnings of available-for-sale securities and (xii) impairment charges. Navios Holdings believes that EBITDA and Adjusted EBITDA are a basis upon which liquidity can be assessed and represents useful information to investors regarding Navios Holdings’ ability to service and/or incur indebtedness, pay capital expenditures and meet working capital requirements. Navios Holdings also believes that EBITDA and Adjusted EBITDA are used (i) by prospective and current lessors as well as potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

While EBITDA and Adjusted EBITDA are frequently used as measures of operating results and the ability to meet debt service requirements, the definitions of EBITDA and Adjusted EBITDA used here may not be comparable to those used by other companies due to differences in methods of calculation.

EBITDA and Adjusted EBITDA have limitations as an analytical tool, and therefore, should not be considered in isolation or as a substitute for the analysis of Navios Holdings’ results as reported under U.S. GAAP. Some of these limitations are: (i) EBITDA and Adjusted EBITDA do not reflect changes in, or cash requirements for, working capital needs; (ii) EBITDA and Adjusted EBITDA do not reflect the amounts necessary to service interest or principal payments on our debt and other financing arrangements; and (iii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future. EBITDA and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, among others, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Holdings’ performance.

Navios Logistics EBITDA is used to measure its operating performance.

We present Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders because we believe it assists investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Our presentation of Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders adjusts net income/(loss) attributable to Navios Holdings’ common stockholders for the items described above under “Earnings Highlights”.  The definition of Adjusted Net Income/(Loss) used here may not be comparable to that used by other companies due to differences in methods of calculation.

Adjusted Basic Earnings/(Loss) attributable to Navios Holdings’ common stockholders per share is defined as Adjusted Net Income/(Loss) attributable to Navios Holdings’ common stockholders divided by the weighted average number of shares for each of the periods presented.

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

Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations

  June 30,   June 30,
Three Month Period Ended 2020   2019
(in thousands of U.S. dollars) (unaudited)    (unaudited)
Net cash provided by operating activities $ 7,012   $ 24,353
Net decrease in operating assets   (5,931)     (7,603)
Net (increase)/ decrease in operating liabilities   (17,324)     10,420
Net interest cost   31,418     34,276
Deferred finance charges   (1,905)     (2,335)
Provision for losses on accounts receivable   (167)     (240)
Equity in affiliates, net of dividends received   8,829     (4,234)
Payments for drydock and special survey costs   8,314     2,794
Noncontrolling interest   (4,334)     (564)
Impairment loss on investment in affiliate       (13,543)
Impairment loss/ loss on sale of vessels, net   (8,967)     (18,253)
Gain on bond extinguishment       5,712
EBITDA $ 16,945   $   30,783
Impairment loss/ loss on sale of vessels, net   8,967     18,253
Other items from affiliates   1,272    
Impairment loss on investment in affiliate       13,543
Adjusted EBITDA including Navios Containers $ 27,184   $ 62,579
Navios Containers’ EBITDA (excluding noncontrolling interest)       (9,791)
Adjusted EBITDA $ 27,184   $ 52,788
Three Month Period Ended June 30, 2020   June 30, 2019
(in thousands of U.S. dollars) (unaudited)   (unaudited)
Net cash provided by operating activities $ 7,012   $ 24,353
Net cash provided by/ (used in) investing activities $ 256   $ (38,099)
Net cash (used in)/ provided by financing activities $ (7,383)   $ 6,464
           

Adjusted EBITDA breakdown

Three Month Period Ended June 30,2020   June 30,2019
(in thousands of U.S. dollars) (unaudited)   (unaudited)
Core shipping operations $ (6,161)   $ 29,100
Navios Logistics (including noncontrolling interest)   22,628     23,981
Navios Containers (including noncontrolling interest)       12,734
Equity in net earnings/ (losses) of affiliated companies   10,717     (3,236)
Adjusted EBITDA including Navios Containers $ 27,184   $   62,579
           

Navios Logistics EBITDA Reconciliation to Net Income

Three Month Period Ended June 30,2020   June 30,2019
(in thousands of U.S. dollars) (unaudited)   (unaudited)
Net income $ 11,981   $ 9,696
Depreciation and amortization   7,267     7,310
Amortization of deferred drydock and special survey costs   995     1,132
Interest expense and finance cost, net   6,798     9,265
Income tax (benefit)/ expense   (79)     85
EBITDA $ 26,962   $ 27,488
           

Navios Containers Reconciliation of EBITDA to Cash from Operations

     
Three Month Period Ended   June 30,2019
(in thousands of U.S. dollars)   (unaudited)
Net cash provided by operating activities $ 6,418
Net decrease in operating assets   (1,209)
Net decrease in operating liabilities   269
Net interest cost   4,113
Deferred finance charges   (267)
Payments for drydock and special survey costs   467
EBITDA $ 9,791
     

Navios Holdings Reconciliation of EBITDA and Adjusted EBITDA to Cash from Operations

  June 30,    June 30,
Six Month Period Ended 2020   2019
(in thousands of U.S. dollars) (unaudited)    (unaudited)
Net cash provided by operating activities $ 5,530   $ 42,676
Net (decrease)/ increase in operating assets   (9,933)     7
Net increase in operating liabilities   (32,392)     (281)
Net interest cost   63,061     68,673
Deferred finance charges   (3,733)     (4,192)
Provision for losses on accounts receivable   (575)     (816)
Equity in affiliates, net of dividends received   8,680     (994)
Payments for drydock and special survey costs   14,129     6,917
Noncontrolling interest   (6,883)     (2,252)
Impairment loss/ loss on sale of vessels, net   (20,215)     (23,784)
Gain on bond extinguishment   11,204     21,374
Impairment loss on investment in affiliate   (6,650)     (13,543)
Impairment of loan receivable from affiliated company   (6,050)    
EBITDA $ 16,173   $   93,785
Impairment loss/ loss on sale of vessels, net   20,215     23,784
Other items from affiliates   6,844    
Impairment of loan receivable from affiliated company   6,050    
Impairment loss on investment in affiliate   6,650     13,543
Adjusted EBITDA including Navios Containers $ 55,932   $   131,112
Navios Containers’ EBITDA (excluding noncontrolling interest)       (21,838)
Adjusted EBITDA $ 55,932   $ 109,274
Six Month Period Ended June 30, 2020   June 30, 2019
(in thousands of U.S. dollars) (unaudited)   (unaudited)
Net cash provided by operating activities $ 5,530   $ 42,676
Net cash used in investing activities $ (56,545)   $ (44,705)
Net cash provided by/ (used in) financing activities $ 27,360   $ (26,669)
           

Adjusted EBITDA breakdown

Six Month Period Ended June 30,2020   June 30,2019
(in thousands of U.S. dollars) (unaudited)   (unaudited)
Core shipping operations $ (3,198)   $ 58,835
Navios Logistics (including noncontrolling interest)   42,328     46,224
Navios Containers (including noncontrolling interest)       25,012
Equity in net earnings of affiliated companies   16,802     1,041
Adjusted EBITDA including Navios Containers $ 55,932   $   131,112
           

Navios Logistics EBITDA Reconciliation to Net Income

Six Month Period Ended June 30,2020   June 30,2019
(in thousands of U.S. dollars) (unaudited)   (unaudited)
Net income $ 19,027   $ 15,001
Depreciation and amortization   14,545     14,656
Amortization of deferred drydock and special survey costs   2,034     2,458
Interest expense and finance cost, net   13,768     19,103
Income tax (benefit)/ expense   (163)     432
EBITDA $ 49,211   $ 51,650
           

Navios Containers Reconciliation of EBITDA to Cash from Operations

Six Month Period Ended June 30,2019
(in thousands of U.S. dollars) (unaudited)
Net cash provided by operating activities $ 6,381
Net increase in operating assets   2,656
Net decrease in operating liabilities   2,287
Net interest cost   7,666
Deferred finance charges   (326)
Payments for drydock and special survey costs   3,174
EBITDA $ 21,838
     

EXHIBIT II

Owned Vessels

Vessel Name   Vessel Type   Year Built   Deadweight (in metric tons)
Navios Serenity   Handysize   2011   34,690
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 Amitie (1)   Panamax   2005   75,395
Navios Taurus   Panamax   2005   76,596
Navios Asteriks   Panamax   2005   76,801
N Amalthia   Panamax   2006   75,318
Navios Galileo   Panamax   2006   76,596
N Bonanza   Panamax   2006   76,596
Rainbow N   Panamax   2011   79,642
Jupiter N   Panamax   2011   93,062
Navios Avior   Panamax   2012   81,355
Navios Centaurus   Panamax   2012   81,472
Navios Victory   Panamax   2014   77,095
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
Navios Canary   Capesize   2015   180,528
Navios Corali   Capesize   2015   181,249
(1) Agreed to be sold
   

Long-term Bareboat-in Fleet in Operation 

Vessel Name   Vessel Type   Year Built   Deadweight (in metric tons)   Purchase Option(1)
Navios Herakles I   Panamax   2019   82,036   Yes
Navios Uranus   Panamax   2019   81,516   Yes
Navios Felicity I   Panamax   2020   81,946   Yes
Navios Galaxy II   Panamax   2020   81,789   Yes
Navios Magellan II   Panamax   2020   82,037   Yes
(1) Generally, Navios Holdings may exercise its purchase option after three to five years of service.
   

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 Venus   Ultra Handymax   2015   61,339   Yes
Navios Marco Polo   Panamax   2011   80,647   Yes
Navios Southern Star   Panamax   2013   82,224   Yes
Elsa S   Panamax   2015   80,954   No
Navios Amber   Panamax   2015   80,994   Yes
Navios Sky   Panamax   2015   82,056   Yes
Navios Coral   Panamax   2016   84,904   Yes
Navios Citrine   Panamax   2017   81,626   Yes
Navios Dolphin   Panamax   2017   81,630   Yes
Mont Blanc Hawk   Panamax   2017   81,638   No
Cassiopeia Ocean   Panamax   2018   82,069   No
Navios Gemini   Panamax   2018   81,704   No (3)
Navios Horizon I   Panamax   2019   81,692   No (3)
Navios Koyo   Capesize   2011   181,415   Yes
Navios Obeliks   Capesize   2012   181,415   Yes
Navios Felix   Capesize   2016   181,221   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.
(3) Navios Holdings has the right of first refusal and profit share on sale of vessel.
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