Navios Maritime Holdings Inc., a global seaborne shipping and logistics company, reported financial results for the third quarter and nine months ended September 30, 2021.

Angeliki Frangou, Chairwoman and Chief Executive Officer, stated, “I am pleased with the results for the third quarter of 2021. In the third quarter, Navios Holdings reported revenue of $168.4 million, EBITDA of $116.1 million and Net Income of $59.8 million. For the first nine months 2021, we reported revenue of $429.0 million, Adjusted EBITDA of $251.3 million and Adjusted Net income of $84.9 million.”

Angeliki Frangou, continued, “Navios announced plans for addressing about $770 million in upcoming note maturities. The announced refinancing addresses the imminent maturity of $614.3 million of Ship Mortgage Notes and provides liquidity and sufficient runway for Navios Holdings to satisfy $155.0 million of Senior Secured Notes maturing in August of 2022. Importantly, for about half of the new debt financing package, we achieved an 18-month period during which there would be no cash requirement for interest or amortization, and overall we extended and staggered the maturity date of our new debt facilities.”

HIGHLIGHTS – RECENT DEVELOPMENTS

$664.3 million Note Retirement

Navios Holdings expects to extinguish $614.3 million of its 7.375% First Priority Ship Mortgage Notes due January 15, 2022 (the “Ship Mortgage Notes”) and to redeem $50.0 million of its 11.25% Senior Secured Notes due August 15, 2022 (the “Senior Secured Notes”) through a combination of sources, including $550 million of debt financing described below and available cash. Navios Holdings has entered into the following agreements: (i) a term loan facility with Credit Agricole CIB (“CACIB”) and BNP Paribas (“BNPP”) of up to $105.0 million; (ii) a term loan facility with Hamburg Commercial Bank AG (“HCOB”) of up to $105.0 million; (iii) sale-leaseback agreements of $77.0 million in total and (iv) $262.6 million of PIK loan facilities from N Shipmanagement Acquisition Corp. and its subsidiaries (“NSM”), an entity affiliated with Navios Holdings’ Chairwoman and Chief Executive Officer, including additional liquidity of $150.0 million and providing for release of approximately $300.0 million of collateral. The PIK loan facilities from NSM provide for a 18-month period during which there will be no cash interest or amortization. These transactions are expected to close by the first half of January 2022.

Pro forma for the above transactions, Navios Holdings has decreased its leverage by 39.3% to $722 million from $1,189 million debt outstanding (including Ship Mortgage Notes repurchased which are being cancelled) as of December 31, 2020. In addition, Navios Holdings extended its maturities for the next four years in a staggered manner. The next maturity after the $105.0 million remaining Senior Secured Notes due in August 2022, will be in 2024.

Navios Partners’ Merger

On October 15, 2021, Navios Partners completed the merger (“NNA Merger”) with Navios Maritime Acquisition Corporation (“Navios Acquisition”). As a result thereof, Navios Acquisition became a wholly-owned subsidiary of Navios Partners. Each outstanding common unit of Navios Acquisition that was held by a unitholder other than Navios Partners, Navios Acquisition and their respective subsidiaries was converted into the right to receive 0.1275 of a common unit of Navios Partners. As a result, 3,388,226 common units of Navios Partners were issued to former public unitholders of Navios Acquisition.

After the completion of the NNA Merger, Navios Holdings has a 10.3% ownership interest in Navios Partners.

Fleet Statistics

Navios Holdings controls a fleet of 36 vessels totaling 3.9 million dwt, of which 25 are owned (including five bareboat-in vessels) and 11 are chartered-in under long-term charters (collectively, the “Core Fleet”). The fleet consists of 12 Capesize, 19 Panamax, four Ultra-Handymax and one Handysize vessels, with an average age of 8.9 years.

Navios Holdings has currently chartered-out 100.0% of available days for the remaining three months of 2021. 88.4% of available days are chartered-out on fixed rate and 11.6% are chartered-out on index.

The average contracted daily charter-in rate for the long-term charter-in vessels for the remaining three months of 2021 is $16,833 per day.

The above figures do not include the fleet of Navios Logistics.

Earnings Highlights

Third Quarter 2021 and 2020 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

The third quarter 2021 and 2020 information presented below was derived from the unaudited condensed consolidated financial statements for the respective periods.

Revenue from the Dry Bulk Vessel Operations for the three month period ended September 30, 2021 increased by $37.5 million, or 55.7%, to $104.9 million, as compared to $67.4 million for the same period during 2020. The increase in dry bulk revenue was mainly attributable to the increase in the time charter and freight market during three month period ended September 30, 2021. The TCE per day increased by 114.5% to $30,146 per day in the three month period ended September 30, 2021, as compared to $14,056 per day in the same period of 2020.

Revenue from the Logistics Business was $63.5 million for the three month period ended September 30, 2021, as compared to $58.8 million for the same period in 2020. The increase was mainly attributable to (a) a $3.3 million increase in revenue from the barge business mainly due to a $2.9 million increase in CoA/voyage revenues related to higher liquid cargo moved and by a $0.3 million increase in time charter revenues mainly due to an increase in time charter days; (iii) a $2.5 million increase in revenue from the port terminal business mainly due to revenues from minimum guarantee contracts in the grain port terminal; and (iii) a $0.8 million increase in sales of products due to the increase in the Paraguayan liquid port’s price of products sold. The overall increase was partially mitigated by a $1.8 million decrease in revenue from the cabotage business mainly due to fewer operating days.

Net Income attributable to Navios Holdings’ common stockholders was $59.8 million for the three month period ended September 30, 2021, as compared to $10.1 million Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2020. Net Loss attributable to Navios Holdings’ common stockholders in the three month period ended September 30, 2020 was affected by items described in the table above. Excluding these items, Adjusted Net Income attributable to Navios Holdings’ common stockholders for the three month period ended September 30, 2021 was $59.8 million as compared to $1.8 million Adjusted Net Income attributable to Navios Holdings’ common stockholders for the three month period ended September 30, 2020. This increase in Adjusted Net Income was mainly due to (i) a $56.3 million increase in Adjusted EBITDA as discussed in the paragraph below; (ii) a $3.2 million decrease in depreciation and amortization; (iii) $1.8 million decrease in interest expense and finance cost, net, mainly due to the partial redemption of the Senior Secured Notes; and (iv) a $0.2 million decrease in stock-based compensation expense. This overall increase of approximately $61.4 million was partially mitigated by (i) a $3.2 million increase in income tax expense mainly due to the recalculation of the deferred tax liability resulting from an increase in income tax rate; and (ii) a $0.2 million increase in amortization of deferred drydock, special survey and other capitalized items.

Net Loss of Navios Logistics, on a standalone basis, was $4.4 million for the three month period ended September 30, 2021 as compared to $2.7 million of Net Income for the same period in 2020. Excluding $4.2 million in write-off of deferred financing cost for bond and debt extinguishment incurred for the three month periods ended September 30, 2020, Adjusted Net income of Navios Logistics, on a standalone basis, was $6.8 million for the three month period ended September 30, 2020.

Adjusted EBITDA of Navios Holdings for the three month period ended September 30, 2021 increased by $56.3 million to $116.1 million, as compared to $59.9 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to (i) a $42.3 million increase in revenue; (ii) a $11.3 million increase in net loss attributable to noncontrolling interest; (iii) a $9.9 million increase in equity in net earnings from affiliate companies; and (iv) a $0.6 million decrease in general and administrative expenses (excluding stock-based compensation expenses). This overall increase of $64.2 million was partially mitigated by a (i) $4.6 million increase in other expense, net; (ii) a $2.2 million increase in time charter, voyage and logistics business expenses; (iii) a $0.8 million increase in loss on bond extinguishment; and (iv) $0.3 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items).

EBITDA of Navios Logistics, on a standalone basis, was $23.1 million for the three month period ended September 30, 2021, as compared to $24.2 million for the same period in 2020. Excluding $4.2 million in write-off of deferred finance cost for bond extinguishment incurred for the three month period ended September 30, 2020, Adjusted EBITDA of Navios Logistics, on a standalone basis, was $28.3 million for the three month period ended September 30, 2020.

Nine Months Ended September 2021 and 2020 Results (in thousands of U.S. dollars, except per share data and unless otherwise stated):

Revenue from the Dry Bulk Vessel Operations for the nine month period ended September 30, 2021 increased by $114.7 million, or 82.0%, to $254.7 million, as compared to $140.0 million for the same period during 2020. The increase in dry bulk revenue was mainly attributable to the increase in the time charter and freight market during nine month period ended September 30, 2021. The TCE per day increased by 122.0% to $21,470 per day in the nine month period ended September 30, 2021, as compared to $9,673 per day in the same period of 2020.

Revenue from the Logistics Business was $174.3 million for the nine month period ended September 30, 2021, as compared to $174.4 million for the same period in 2020. The decrease was mainly attributable to (i) a $8.3 million decrease in revenue from the cabotage business mainly due to fewer operating days; (ii) a $6.9 million decrease in sales of products due to the decrease in the Paraguayan liquid port’s volume of products sold. The overall decrease was partially mitigated by (i) a $9.9 million increase in revenue from the barge business mainly due to a $16.8 million increase in CoA/voyage revenues related to higher CoA/voyage revenues of convoys previously under time charter contracts, partially mitigated by a $6.8 million decrease in time charter revenues mainly due to the expiration of certain legacy time charter contracts; and (ii) a $5.3 million increase in revenue from the port terminal business mainly due to higher volumes transshipped in the grain port terminal.

Net Income attributable to Navios Holdings’ common stockholders was $84.9 million for the nine month period ended September 30, 2021, as compared to $98.6 million Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2020. Net Income/(loss) attributable to Navios Holdings’ common stockholders was affected by items described in the table above. Excluding these items, Adjusted Net Income attributable to Navios Holdings’ common stockholders for the nine month period ended September 30, 2021 was approximately $84.9 million, as compared to $47.0 million Adjusted Net Loss attributable to Navios Holdings’ common stockholders for the same period in 2020. This increase in Adjusted Net Income was mainly due to (i) a $135.5 million increase in Adjusted EBITDA as discussed in the paragraph below; (ii) a $7.0 million decrease in depreciation and amortization; and (iii) a $0.5 million decrease in stock-based compensation expense. This overall increase of $143.0 million was partially mitigated by (i) a $7.5 million increase in interest expense and finance cost, net, mainly due to the higher weighted average interest rate of Navios Logistics due to the issuance of the 10.75% Notes due 2025; (ii) a $3.1 million increase in income tax expense mainly due to the recalculation of the deferred tax liability resulting from an increase in income tax rate; and (iii) a $0.5 million increase in amortization of deferred drydock, special survey and other capitalized items.

Net Loss of Navios Logistics, on a standalone basis, was $2.3 million for the nine month period ended September 30, 2021 as compared to $21.7 million for the same period in 2020. Excluding $4.2 million in write-off of deferred finance cost for bond extinguishment incurred for the nine month period ended September 30, 2020, Adjusted Net Income of Navios Logistics, on a standalone basis, was $25.9 million for the nine month period ended September 30, 2020.

Adjusted EBITDA of Navios Holdings for the nine month period ended September 30, 2021 increased by $135.5 million to $251.3 million, as compared to $115.8 million for the same period in 2020. The increase in Adjusted EBITDA was primarily due to (i) a $114.7 million increase in revenue; (ii) a $17.4 million increase in net loss attributable to noncontrolling interest; (iii) a $12.0 million decrease in time charter, voyage and logistics business expenses; (iv) a $7.9 million increase in equity in net earnings from affiliate companies; and (iv) a $0.7 million decrease in general and administrative expenses (excluding stock-based compensation expenses). This overall increase of $152.7 million was partially mitigated by (i) a $10.2 million decrease in gain on bond extinguishment; (ii) a $4.4 million increase in direct vessel expenses (excluding the amortization of deferred drydock, special survey costs and other capitalized items); and (iii) a $2.7 million decrease in other expense, net;

EBITDA of Navios Logistics, on a standalone basis, was $67.8 million for the nine month period ended September 30, 2021, as compared to $73.4 million for the same period in 2020. Excluding $4.2 million in write-off of deferred financing cost for bond and debt extinguishment incurred for the nine month period ended September 30, 2020, Adjusted EBITDA of Navios Logistics, on a standalone basis, was $77.5 million for the nine month period ended September 30, 2020.