- 74.1% increase in adjusted EBITDA to $55.7 million for the third quarter of 2009 - 25.5% increase in adjusted EBITDA to $142.4 million for the first nine months - 271.7% increase in quarterly adjusted net income to $21.3 million - EPS of $0.21 for the third quarter of 2009 - Declares quarterly dividend of $0.06 per share for the third quarter of 2009 PIRAEUS, Greece, Nov. 18 /PRNewswire-FirstCall/ -- Navios Maritime Holdings Inc. ("Navios Holdings") (NYSE:NM), a global, vertically integrated seaborne shipping and logistics company, today reported financial results for the third quarter and nine months ended September 30, 2009. "I am pleased with our financial performance for the quarter. We generated approximately $56.0 million of EBITDA. This quarter reflects a year's worth of hard work positioning Navios in the market. Our efforts were recognized, as we successfully accessed the high yield market and closed on a $400.0 million secured note offering with a coupon of 8 7/8%," stated Angeliki Frangou, Chairman and CEO of Navios Holdings. Ms. Frangou continued, "With our growing cash flow and stable balance sheet, we are positioned to take advantage of opportunities that will develop. While we are optimistic about the prospects for the world's economies, we continue to monitor the health of our industry by reviewing the supply of new vessels and availability of financing from commercial banks." THIRD QUARTER 2009 HIGHLIGHTS -- RECENT DEVELOPMENTS Issuance of $400.0 million of 8-7/8% first priority mortgage notes In November 2009, Navios Holdings completed the sale of $400.0 million of 8-7/8% first priority ship mortgage notes due 2017 (the 'Notes'). The Notes are guaranteed by all of the subsidiaries that provide a guarantee of Navios Holdings' 9-1/2% senior notes due 2014. As of the closing date, the Notes are secured by first priority ship mortgages on 13 drybulk vessels owned by certain subsidiary guarantors. Of the offering proceeds, $105.0 million has been escrowed to provide additional financing to complete the purchase of two new vessels expected to be delivered in late 2009 (which will become part of the collateral securing the Notes). The balance of the offering proceeds have been used to repay borrowings under certain of Navios Holdings' existing credit facilities and to pay transaction and related expenses. Sale of Navios Apollon On October 29, 2009, Navios Holdings sold to Navios Maritime Partners L.P. ("Navios Partners") the Navios Apollon, a 2000 built Ultra-Handymax vessel with a capacity of 52,073 dwt, chartered out at a net rate of $23,700 per day until November 2012. The sale price amounted to $32.0 million and was received entirely in cash. Part of the proceeds of the sale, amounting to $18.3 million was used to repay existing indebtedness. Acquisition of Navios Celestial In September 2009, Navios Holdings acquired the Navios Celestial, a 2009 built Ultra-Handymax vessel, of 58,084 dwt, from a Japanese Shipyard. The vessel's nominal purchase price of $36.2 million was funded with $31.2 million of cash, and $5.0 million in mandatorily convertible preferred stock. As a result, the vessel's effective purchase price was $33.7 million, using the $10.00 mandatory conversion price of the preferred stock. Financial Highlights -- Adjusted EBITDA increased by 74.1% to $55.7 million in the third quarter of 2009 from $32.0 million in the same period in 2008 -- Adjusted EBITDA increased by 25.5% to $142.4 million in the nine months ended September 30, 2009 from $113.4 million in the same period in 2008 -- Adjusted net income increased by 271.7% to $21.3 million in the third quarter of 2009 from $5.7 million in the same period in 2008. -- Stockholders' Equity increased by 10.9% to $893.5 million at September 30, 2009 compared with $805.8 million at December 31, 2008 Dividend Policy: The Board of Directors declared a quarterly cash dividend for the third quarter of 2009 of $0.06 per share of common stock. This dividend is payable on January 7, 2010 to stockholders of record as of December 18, 2009. The declaration and payment of any further dividend remains subject to the discretion of the Board and will depend on, among other things, Navios Holdings' cash requirements as measured by market opportunities and restrictions under its credit agreements. Time Charter Coverage: Navios has recently chartered-out the following vessels: The Navios Altair, a 83,001 dwt Panamax vessel built in 2006, has been chartered-out for one year, commencing October 24, 2009. The net daily charter-out rate is $19,238 per day. The Navios Star, a 76,662 dwt Panamax vessel built in 2002, has been chartered-out for one year, commencing November 23, 2009. The net daily charter-out rate will be $19,000 per day. Including the above charter-out agreements, Navios Holdings has extended its long-term fleet employment by entering into agreements to charter-out vessels for periods ranging from one to 12 years. As of November 18, 2009, Navios Holdings had contracted 99.5%, 83.3%, 63.4% and 56.6% of its available days on a charter-out basis for 2009, 2010, 2011 and 2012, respectively, equivalent to $246.2 million, $309.8 million, $308.8 million and $298.3 million in revenue, respectively. The average contractual daily charter-out rate for the core fleet is $24,931, $30,243, $35,080 and $36,098 for 2009, 2010, 2011 and 2012, respectively. The average daily charter-in rate for the active long-term charter-in vessels for 2009 and 2010 is $9,985 and $10,350, respectively. The above figures do not include vessels servicing the Contracts of Affreightment ("COA") and Logistics businesses. Fleet Profile: Navios Holdings controls a fleet of 59 vessels totaling 6.3 million dwt, of which 32 are owned and 27 are chartered-in under long-term charters. Navios Holdings currently operates 38 vessels (eight Capesize, 13 Panamax, 16 Ultra Handymax and one Handysize product tanker vessel) totaling 3.3 million dwt and has 21 newbuildings to be delivered. These vessels are expected to be delivered at various dates through 2013. The average age of the operating fleet is 4.7 years. Exhibit 2 displays the "Core Fleet" profile of Navios Holdings. Financial Results For the following results and the selected financial data presented herein, Navios Holdings has compiled consolidated statement of income for the three and nine month periods ended September 30, 2009 and 2008. The information was derived from the unaudited consolidated financial statements for the respective periods. EBITDA is a non-US GAAP financial measure and should not be used in isolation or substitution for Navios Holdings' results. Third Quarter 2009 Results (in thousands of U.S. dollars, unless otherwise stated, except per share data): Three Months Three Months ended ended September September 30, 2009 30, 2008 ---------- --------- Revenue $160,570 $363,254 EBITDA $55,746 $56,955 Adjusted EBITDA(*) $55,746 $32,015 Net income $21,318 $30,676 Adjusted net income(*) $21,318 $5,736 EPS $0.21 $0.29 Adjusted EPS (*) $0.21 $0.05 (*) Adjusted EBITDA, Adjusted Net Income and Adjusted EPS for the three months ended September 30, 2008, exclude $24.9 million gain on sale of assets. Revenue from vessel operations for the three months ended September 30, 2009 was $121.3 million as compared to $329.8 million for the same period during 2008. The decrease in revenue was mainly attributable to a) the decrease in Time Charter Equivalent ("TCE") per day by 51.7% to $24,061 per day in the third quarter of 2009 from $49,769 per day in the same period of 2008 and b) the decrease in the available days for the fleet by 34.6% to 3,949 in the third quarter of 2009 from 6,036 days in the same period of 2008. The decrease in available days is mainly attributable to the significantly reduced short term fleet activity by 2,524 days, from 3,112 days in the third quarter of 2008 to 588 days in the third quarter of 2009. Revenue from the logistics business was $39.3 million for the three months ended September 30, 2009 as compared to $33.5 million during the same period of 2008. This increase was mainly due to the increased fleet of Navios Logistics (which became fully operating in the fourth quarter of 2008) compared to the same period of 2008. Adjusted EBITDA for the third quarter of 2009 increased by $23.8 million to $55.8 million compared to $32.0 million for the third quarter of 2008. Including the gain on sale of assets in 2008, EBITDA for the third quarter of 2009 and 2008 was $55.7 million and $57.0 million, respectively. The $1.3 million decrease in EBITDA was primarily due to a decrease in revenue by $202.7 million from $363.3 million in the third quarter of 2008 to $160.6 million for the same period in 2009, an increase in direct vessel expenses (excluding the amortization of deferred dry dock and special survey costs) by $1.4 million from $6.0 million in the third quarter of 2008 to $7.4 million for the same period in 2009, an increase in general and administrative expenses by $0.8 million from $8.6 million in the third quarter of 2008 to $9.4 million for the same period in 2009 (excluding $0.6 million and $0.8 million share-based compensation for the third quarter of 2009 and 2008, respectively), a decrease in gain from derivatives by $1.2 million from $3.4 million for the third quarter of 2008 to $2.2 million for the same period in 2009, an increase in net other expenses by $0.6 million, a decrease in gains from sale of assets by $24.9 million and an increase in income attributable to non-controlling interests by $0.9 million from $0.9 million in the third quarter of 2008 to $1.8 million in the same period of 2009. This overall variance of $232.5 million was mitigated by a decrease in time charter, voyage and logistic business expenses by $225.6 million from $321.0 million in the third quarter of 2008 to $95.4 million in the same period in 2009 and an increase in equity in net earnings from affiliated companies by $5.6 million, from $3.9 million for the third quarter of 2008 to $9.5 million for the same period of 2009. EBITDA from the logistics business was $11.4 million for the three months ended September 30, 2009 as compared to $9.7 million during the same period in 2008. Net income for third quarter ended September 30, 2009 was $21.3 million as compared to $30.7 million for the comparable period of 2008. The decrease of net income by $9.4 million was mainly due to the decrease of $1.3 million in EBITDA discussed above, an increase of depreciation and amortization by $5.3 million, the increase in net interest expense by $3.7. These were mitigated by the decrease in income tax by $0.6 million, the decrease in amortization for drydock and special survey costs by $0.1 million and the $0.2 million decrease in share-based compensation. Nine months ended September 30, 2009 Results (in thousands of U.S. dollars, unless otherwise stated, except per share data): Nine Months Nine Months ended ended September September 30, 2009 30, 2008 --------- ---------- Revenue $449,946 $1,031,887 EBITDA $151,517 $141,128 Adjusted EBITDA (*) $142,423 $113,440 Net Income $55,448 $124,089 Adjusted Net Income $46,354 $39,152 EPS $0.55 $1.18 Adjusted EPS $0.46 $0.36 (*) Adjusted EBITDA, for the nine months ended September 30, 2009, excludes $16.8 million gain on sale of assets, $6.1 million non cash compensation from Navios Partners and $13.8 million unrealized mark- to-market losses on common units of Navios Partners, accounted for as available for sale securities. Adjusted EBITDA, for the nine months ended September 30, 2008, excludes $27.7 million gain on sale of assets. Adjusted Net Income and Adjusted EPS also exclude the items described above. Adjusted Net income and Adjusted EPS for the nine months ended September 30, 2008, were further adjusted to exclude a $57.3 million write-off of deferred Belgian taxes. Revenue from vessel operations for the nine months ended September 30, 2009 was $346.1 million as compared to $983.5 million for the same period during 2008. The decrease in revenue was mainly attributable to a) the decrease in TCE per day by 44.8% to $26,353 per day in the first nine months of 2009 from $47,798 per day in the same period of 2008 and b) the decrease in the available days for the fleet by 36.0% to 11,550 in the first nine months of 2009 from 18,040 days in the same period of 2008. The decrease in available days is mainly attributable to the significantly reduced short term fleet activity by 4,580 days, from 9,208 days in the first nine months of 2008 to 2,059 days in the first nine months of 2009. Revenue from the logistics business was $103.8 million in the first nine months of 2009 as compared to $80.5 million during the same period of 2008. This increase was mainly due to the increased fleet of Navios Logistics (which commenced operations in the fourth quarter of 2008) compared to the same period of 2008. Adjusted EBITDA for the first nine months of 2009 increased by $29.0 million to $142.4 million compared to $113.4 million for the first nine months of 2008. Including one off adjustments described above EBITDA for the first nine months of 2009 and 2008 was $151.5 million and $141.1 million, respectively. The $10.4 million increase in EBITDA was primarily due to a decrease in time charter, voyage and logistic business expenses by $627.6 million from $897.6 million in the first nine months of 2008 to $270.0 million in the same period in 2009, an increase in equity in net earnings from affiliated companies by $7.7 million, from $12.3 million for the first nine months of 2008 to $20.0 million for the same period of 2009 This overall favorable variance of $635.3 million was mitigated mainly by a decrease in revenue by $582.0 million from $1,031.9 million in the first nine months of 2008 to $449.9 million for the same period in 2009, an increase in direct vessel expenses (excluding the amortization of deferred dry dock and special survey costs) by $3.7 million from $17.6 million in the first nine months of 2008 to $21.3 million for the same period in 2009, an increase in general and administrative expenses by $4.4 million from $25.0 million in the first nine months of 2008 to $29.4 million for the same period in 2009 (excluding $1.6 million and $2.2 million share-based compensation for the first nine months of 2009 and 2008, respectively), a decrease in gain from derivatives by $10.8 million from $13.6 million for the first nine months of 2008 to $2.8 million for the same period in 2009, an increase in net other expenses by $12.0 million, an increase in income attributable to non-controlling interests by $1.1 million from $2.7 million in the first nine months of 2008 to $3.8 million in the same period of 2009, and a decrease in gains from sale of assets by $10.9 million. EBITDA from the logistics business was $25.8 million for the nine months ended September 30, 2009 as compared to $23.8 million during the same period in 2008. Net income for nine months ended September 30, 2009 was $55.4 million as compared to $124.1 million for the comparable period of 2008. The decrease of net income by $68.7 million was mainly due to the increase in depreciation and amortization by $9.7 million, the increase in net interest expense by $14.0 million, the increase in drydock amortization by $0.4 million and the decrease in income taxes by $55.6 million mainly due to the write-of of deferred income taxes of $57.3 million in the first nine months of 2008. These were mitigated by the increase of $10.4 million in EBITDA discussed above, as well as the $0.6 million decrease in share-based compensation. Purchase Options: Navios Holdings has options to acquire three of the 17 chartered-in vessels currently in operation within the next two years (one Capesize, and two Ultra-Handymaxes) and eight of the ten long-term chartered-in vessels on order (on two of the 11 purchase options Navios Holdings holds a 50% initial purchase option). Fleet Summary Data: The following table reflects certain key indicators indicative of the performance of the Navios Holdings and its fleet performance for the three and nine month periods ended September 30, 2009 and 2008. Three Months Ended Nine Months Ended ------------------ ----------------- September September September September 30, 2009 30, 2008 30, 2009 30, 2008 --------- --------- --------- --------- (Unaudited) (Unaudited) (Unaudited) (Unaudited) Available Days (1) 3,949 6,036 11,550 18,040 Operating Days (2) 3,933 6,032 11,516 18,014 Fleet Utilization (3) 99.6% 99.9% 99.7% 99.9% Equivalent Vessels 43 66 42 66 Time Charter Equivalent (4) $24,061 $49,769 $26,353 $47,798 (1) Available days for fleet are total calendar days the vessels were in Navios Holdings' possession for the relevant period after subtracting off-hire days associated with major repairs, 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 are the number of available days in the relevant period less the aggregate number of days that the vessels are off-hire due to any reason, including unforeseen circumstances. The shipping industry uses operating days to measure the aggregate number of days in a relevant period during which vessels actually generate revenues. (3) Fleet utilization is the percentage of time that Navios Holdings' vessels were available for 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, 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 already announced, today, Wednesday, November 18, 2009, at 8:30 am EST, members of senior management will host a conference call to provide highlights and commentary on the third quarter and nine months ended September 30, 2009. A supplemental slide presentation will be available on the Navios Holdings website, http://www.navios.com/, under the "Investors" section at 7:30 am EST on the day of the call. The conference call details are as follows: Call Date/Time: Wednesday, November 18, 2009; 8:30 am EST Call Title: Navios Maritime Holdings Inc. Q3 2009 Financial Results Conference Call US Dial In: +1.888.694.4702 International Dial In: +1.973.582.2741 Conference ID: 4095 9523 The conference call replay will be available shortly after the live call and remain available for one business week at the following numbers: US Replay Dial In: +1.800.642.1687 International Replay Dial In: +1.706.645.9291 Conference ID: 4095 9523 This call will be simultaneously Webcast at the following Web address: http://www.videonewswire.com/event.asp?id=63979. The Webcast will be archived and available at this same Web address for one month following the call. About Navios Maritime Holdings Inc. Navios Maritime Holdings Inc. is a global, vertically integrated seaborne shipping and logistics company focused on the transport and transshipment of drybulk commodities including iron ore, coal and grain. Navios Holdings may, from time to time, be required to offer certain owned Capesize and Panamax vessels to Navios Maritime Partners L.P. for purchase at fair market value according to the terms of the Omnibus Agreement. For more information about Navios Holdings please visit its website: http://www.navios.com/. About Navios South American Logistics Inc. Navios Logistics was formed in 2007 through the acquisition of control of the Horamar Group, established in 1975. Navios Logistics specializes in transporting and storing liquid and dry bulk cargoes in the Hidrovia region connecting Argentina, Bolivia, Brazil, Paraguay and Uruguay. Navios Logistics currently controls a fleet of 240 barges and vessels. It also owns and operates an upriver oil storage and transfer facility in Paraguay and the largest bulk transfer and storage port terminal in Uruguay. About Navios Maritime Partners L.P. Navios Maritime Partners L.P. (NYSE:NMM), a publicly traded master limited partnership formed by Navios Holdings is an owner and operator of dry bulk vessels. For more information, please visit its website: http://www.navios-mlp.com/. Forward Looking Statements -- Safe Harbor This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and Navios Holdings' growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "expects," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations of such words and similar expressions are intended to identify forward-looking statements. Such statements include comments regarding expected revenues and time charters. Although Navios Holdings believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates which are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of Navios Holdings. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to changes in the demand for dry bulk vessels, competitive factors in the market in which Navios Holdings operates; risks associated with operations outside the United States; and other factors listed from time to time in Navios Holdings' filings with the Securities and Exchange Commission. Navios Holdings expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in Navios Holdings' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Contacts: Public & Investor Relations Navios Maritime Holdings Inc. Investor Relations +1.212.279.8820 EXHIBIT I NAVIOS MARITIME HOLDINGS INC. CONSOLIDATED BALANCE SHEETS (Expressed in thousands of U.S. dollars) September 30, December 31, 2009 2008 ---- ---- (unaudited) ASSETS Current assets Cash and cash equivalents $238,854 $133,624 Restricted cash 17,841 17,858 Accounts receivable, net of allowance for doubtful accounts of $9,718 as at September 30, 2009 and $8,343 as at December 31, 2008 104,888 109,780 Short-term derivative asset 80,017 214,156 Short-term backlog asset - 44 Due from affiliate companies 5,150 1,677 Prepaid expenses and other current assets 22,120 28,270 ------ ------ Total current assets 468,870 505,409 ------- ------- Deposit for vessel acquisitions 557,787 404,096 Vessels, port terminal and other fixed assets, net 1,192,309 737,094 Long-term derivative assets 17,264 36,697 Other long-term assets 57,429 46,855 Investments in affiliates 12,380 5,605 Investments in available for sale securities 37,420 22,358 Intangible assets other than Goodwill 310,274 347,878 Goodwill 147,632 147,632 ------- ------- Total non-current assets 2,332,495 1,748,215 --------- --------- Total assets $2,801,365 $2,253,624 ---------- ---------- LIABILITIES AND EQUITY Current liabilities Accounts payable $57,283 $72,520 Dividends payable 6,012 9,096 Accrued expenses 42,595 34,468 Deferred income 11,335 11,319 Short-term derivative liability 46,258 128,952 Current portion of long-term debt 68,694 15,177 ------ ------ Total current liabilities 232,177 271,532 ------- ------- Senior notes, net of discount 298,503 298,344 Long-term debt, net of current portion 1,094,608 574,194 Unfavorable lease terms 62,172 76,684 Long-term liabilities and deferred income 59,125 47,827 Deferred tax liability 22,538 26,573 Long-term derivative liability 5,536 23,691 ----- ------ Total non-current liabilities 1,542,482 1,047,313 --------- --------- Total liabilities 1,774,659 1,318,845 --------- --------- Commitments and contingencies - - Stockholders' equity Preferred stock - $0.0001 par value, authorized 1,000,000 shares, 5,199 and none issued and outstanding as of September 30, 2009 and December 31, 2008, respectively - - Common stock - $0.0001 par value, authorized 250,000,000 shares, issued and outstanding, 100,202,960 and 100,488,784 as of September 30, 2009 and December 31, 2008, respectively 10 10 Additional paid-in capital 516,295 494,719 Accumulated other comprehensive income/(loss) 6,263 (22,578) Retained earnings 370,934 333,669 Total stockholders' equity 893,502 805,820 ------- ------- Noncontrolling interest 133,204 128,959 Total equity 1,026,706 934,779 --------- ------- Total liabilities and equity $2,801,365 $2,253,624 ========== ========== NAVIOS MARITIME HOLDINGS INC. CONSOLIDATED STATEMENTS OF INCOME (Expressed in thousands of U.S. dollars -- except per share data) Three Month Three Month Nine Month Nine Month Period ended Period ended Period ended Period ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 --------- --------- --------- --------- (unaudited) (unaudited) (unaudited) (unaudited) Revenue $160,570 $363,254 $449,946 $1,031,887 Time charter, voyage and logistic business expenses (95,355) (320,995) (270,037) (897,557) Direct vessel expenses (7,994) (6,469) (23,079) (18,987) General and administrative expenses (9,969) (9,412) (30,961) (27,190) Depreciation and amortization (19,915) (14,641) (51,832) (42,083) Interest income/expense and finance cost, net (13,775) (10,142) (42,877) (28,940) Gain on derivatives 2,167 3,380 2,786 13,635 Gain on sale of assets/partial sale of subsidiary - 24,940 16,790 27,688 Other income/expense, net (2,517) (2,027) (13,509) (1,565) ------ ------ ------- ------ Income before equity in net earnings of affiliate companies 13,212 27,888 37,227 56,888 Equity in net earnings of affiliated companies 9,458 3,949 19,957 12,285 ----- ----- ------ ------ Income before taxes $22,670 $31,837 $57,184 $69,173 Income taxes 433 (228) 2,027 57,640 --- ---- ----- ------ Net income 23,103 31,609 59,211 126,813 Less: Net income attributable to the noncontrolling interest (1,785) (933) (3,763) (2,724) ------ ---- ------ ------ Net income attributable to Navios Holdings common stockholders $21,318 $30,676 $55,448 $124,089 ------- ------- ------- -------- Basic net income per share attributable to Navios Holdings stockholders $0.21 $0.29 $0.55 $1.18 ===== ===== ===== ===== Weighted average number of shares, basic 99,839,013 104,426,762 99,910,610 105,494,192 ---------- ----------- ---------- ----------- Diluted net income per share attributable to Navios Holdings stockholders $0.20 $0.29 $0.54 $1.13 ===== ===== ===== ===== Weighted average number of shares, diluted 105,803,346 107,481,341 103,733,886 109,441,193 =========== =========== =========== =========== NAVIOS MARITIME HOLDINGS INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in thousands of U.S. dollars) Nine Month Nine Month Period ended Period ended September September 30, 2009 30, 2008 --------- --------- (unaudited) (unaudited) OPERATING ACTIVITIES: Net income $59,211 $126,813 Adjustments to reconcile net income to net cash provided by operating activities: Non cash adjustments 46,513 (34,324) Decrease in operating assets 8,001 67,516 Increase/(Decrease) in operating liabilities 34,549 (182,573) Payments for dry-dock and special survey costs (3,282) (3,055) ------ ------ Net cash provided by/(used in) operating activities 144,992 (25,623) ------- ------- INVESTING ACTIVITIES: Acquisition of subsidiary, net of cash acquired - (105,069) Deposits in escrow in connection with acquisition of subsidiary - (5,000) Acquisition of vessels (318,876) (39,161) Deposits for vessel acquisitions (239,823) (173,473) Receipts from finance lease 416 4,705 Proceeds from sale of assets 34,600 70,088 Purchase of property and equipment (28,955) (95,607) ------- ------- Net cash used in investing activities (552,638) (343,517) -------- -------- FINANCING ACTIVITIES: Proceeds from long-term loan, net of deferred finance fees 555,129 153,784 Repayment of long-term debt and payment of principal (12,019) (27,637) Dividends paid (21,142) (28,804) Acquisition of treasury stock (717) (41,361) Increase in restricted cash (8,375) - Issuance of common stock - 6,749 -- ----- Net cash provided by financing activities 512,876 62,731 ------- ------ Increase/(decrease) in cash and cash equivalents 105,230 (306,409) ------- -------- Cash and cash equivalents, beginning of period 133,624 427,567 ------- ------- Cash and cash equivalents, end of period $238,854 $121,158 -------- -------- SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid for interest $37,738 $39,977 Cash paid for income taxes $2,508 $1,650 ====== ====== Non-cash investing and financing activities For issuance of convertible debt in connection with the acquisition of vessels $32,046 $- For issuance of preferred stock in connection with the acquisition of vessels $22,585 $- Disclosure of Non-GAAP Financial Measures EBITDA: EBITDA represents net income before interest, taxes, depreciation and amortization. Navios Holdings believes that EBITDA is a basis upon which liquidity can be assessed and believes that EBITDA presents useful information to investors regarding Navios Holdings' ability to service and/or incur indebtedness. Adjusted EBITDA represents EBITDA before gains on sales of assets EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for analysis of Navios Holdings' results as reported under US GAAP. Some of these limitations are: (i) EBITDA does not reflect changes in, or cash requirements for, working capital needs; and (ii) although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and EBITDA does not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA should not be considered as a principal indicator of Navios Holdings' performance. EBITDA and Adjusted EBITDA Reconciliation to Cash from Operations Three Months Ended September 30, September 30, (in thousands of US Dollars) 2009 2008 Net cash provided by/(used in) operating activities $31,276 $(81,571) Net increase (decrease) in operating assets 18,643 (30,357) Net increase (decrease) in operating liabilities (14,710) 138,305 Net interest cost 13,775 11,626 Deferred finance charges (1,087) (560) Unrealized gain (loss) on FFA derivatives, warrants and interest rate swaps 5,303 (5,963) Provision for losses on accounts receivable (334) (118) Earnings in affiliates and joint ventures, net of dividends received 3,214 819 Payments for drydock and special survey 1,451 767 Minority interest (1,785) (933) ------ ---- Adjusted EBITDA 55,746 32,015 ------ ------ Gain on sale of assets/partial sale of subsidiary - 24,940 -- ------ EBITDA $55,746 $56,955 ======= ======= Nine Months Ended September 30, September 30, (in thousands of US Dollars) 2009 2008 Net cash provided by/(used in) operating activities $144,992 $(25,623) Net decrease in operating assets (8,001) (67,516) Net (increase) decrease in operating liabilities (34,549) 182,573 Net interest cost 42,877 30,425 Deferred finance charges (3,215) (1,485) Provision for losses on accounts receivable (1,375) (118) Unrealized gain (loss) on FFA derivatives, warrants and interest rate swaps 1,483 (9,130) Earnings in affiliates and joint ventures, net of dividends received 692 3,983 Payments for drydock and special survey 3,282 3,055 Minority interest (3,763) (2,724) ------ ------ Adjusted EBITDA 142,423 113,440 Gain on sale of assets/partial sale of subsidiary 16,790 27,688 Unrealized losses on available for sale securities (13,778) - Non cash compensation received 6,082 - ----- -- EBITDA $151,517 $141,128 ======== ======== EXHIBIT 2 Owned Vessels Vessel Name Vessel Type Year Built Deadweight ----------- ----------- ---------- ---------- (in metric tons) Navios Ionian Ultra Handymax 2000 52,068 Navios Horizon Ultra Handymax 2001 50,346 Navios Herakles Ultra Handymax 2001 52,061 Navios Achilles Ultra Handymax 2001 52,063 Navios Meridian Ultra Handymax 2002 50,316 Navios Mercator Ultra Handymax 2002 53,553 Navios Arc Ultra Handymax 2003 53,514 Navios Hios Ultra Handymax 2003 55,180 Navios Kypros Ultra Handymax 2003 55,222 Navios Ulysses Ultra Handymax 2007 55,728 Navios Vega Ultra Handymax 2009 58,792 Navios Celestial Ultra Handymax 2009 58,084 Navios Magellan Panamax 2000 74,333 Navios Star Panamax 2002 76,662 Navios Hyperion Panamax 2004 75,707 Navios Orbiter Panamax 2004 76,602 Navios Asteriks Panamax 2005 76,801 Navios Pollux Capesize 2009 180,727 Navios Happiness Capesize 2009 180,022 Navios Bonavis Capesize 2009 180,022 Vanessa Product Handysize 2002 19,078 Owned Vessels to be delivered Vessel Name Vessel Delivery Date Deadweight ----------- ------ ------------- ---------- (in metric tons) Navios Aurora II Capesize 11/2009 172,000 Navios Lumen Capesize 12/2009 181,000 Navios Stellar Capesize 12/2009 172,000 Navios Phoenix Capesize 12/2009 180,000 Navios Antares Capesize 1/2010 172,000 Navios Fulvia Capesize 8/2010 180,000 NB1 Capesize 8/2010 180,000 NB2 Capesize 9/2010 180,000 NB3 Capesize 10/2010 180,000 NB4 Capesize 12/2010 180,000 NB5 Capesize 2/2011 180,000 Long term Chartered-in Fleet in Operation Purchase Vessel Name Vessel Type Year Built Deadweight Option(1) ----------- ----------- ---------- ---------- ---------- (in metric tons) Navios Vector Ultra Handymax 2002 50,296 No Navios Astra Ultra Handymax 2006 53,468 Yes Navios Primavera Ultra Handymax 2007 53,464 Yes Navios Armonia Ultra Handymax 2008 55,100 No Navios Cielo Panamax 2003 75,834 No Navios Orion Panamax 2005 76,602 No Navios Titan Panamax 2005 82,936 No Navios Altair Panamax 2006 83,001 No Navios Esperanza Panamax 2007 75,200 No Torm Antwerp Panamax 2008 75,250 No Belisland Panamax 2003 76,602 No Golden Heiwa Panamax 2007 76,662 No SA Fortius Capesize 2001 171,595 No C. Utopia Capesize 2007 174,000 No Beaufiks Capesize 2004 180,181 Yes Rubena N Capesize 2006 203,233 No SC Lotta Capesize 2009 170,500 No Long term Chartered-in Fleet to be Delivered Purchase Vessel Name Vessel Type Delivery Date Deadweight Option(1) ----------- ----------- ------------- ---------- --------- (in metric tons) Phoenix Beauty Capesize 01/2010 170,500 No Kleimar TBN Capesize 04/2010 176,800 No Navios TBN Handysize 02/2011 35,000 Yes(2) Navios TBN Handysize 04/2011 35,000 Yes(2) Navios TBN Panamax 09/2011 80,000 Yes Navios TBN Capesize 09/2011 180,200 Yes Navios TBN Ultra Handymax 03/2012 61,000 Yes Kleimar TBN Capesize 07/2012 180,000 Yes Navios TBN Panamax 01/2013 82,100 Yes Navios TBN Ultra Handymax 08/2013 61,000 Yes (1) Generally, Navios Holdings may exercise its purchase option after three to five years of service. (2) The initial 50% purchase option on each vessel is held by Navios Holdings. DATASOURCE: Navios Maritime Holdings Inc. CONTACT: Public & Investor Relations, Navios Maritime Holdings Inc., Investor Relations, +1-212-279-8820, Web Site: http://www.navios-mlp.com/

Copyright