Navios Maritime Holdings Inc. Reports Financial Results for the Second Quarter and Six Months Ended June 30, 2008
Published In: Business, Greece 
Tuesday, August 19, 2008 4:05 PM
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PIRAEUS, Greece, Aug. 19 /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 second quarter and six months ended June 30, 2008.

"During the second quarter of 2008, we delivered excellent financial and
operational performance, as evidenced by the 6% increase in Adjusted EBITDA to
$48.2 million," stated Ms. Angeliki Frangou, Chairman and CEO of Navios
Holdings. "Furthermore, we continue to strike a favorable balance of spot
exposure and long-term cash flow generation as illustrated by our chartering
strategy."

Ms. Frangou continued, "For example, and as we announced yesterday, we
renewed charters-out on two of our vessels at an 80% premium to their previous
rates and also chartered out two newbuilding capesize vessels well before
their expected delivery. These secure charters are complemented by new
vessels to be delivered charter-free to Navios Holdings' fleet in the fourth
quarter of 2008 and first quarter of 2009. This advantageous time-charter and
spot mix should continue to enhance our financial flexibility as we continue
to pursue our growth strategy and provide returns to shareholders."

Throughout this press release, "Adjusted EBITDA" for the three and six
months ended June 30, 2008 and 2007 is defined as EBITDA, including amounts
otherwise eliminated by finance lease accounting (treating a portion of
vessels' earnings as a repayment of capital).


Q2 2008 HIGHLIGHTS - RECENT DEVELOPMENTS

Navios Maritime Holdings, Inc.


Dividend:

On August 18, 2008, the Board of Directors declared a quarterly cash
dividend with respect to the second quarter of 2008 of $0.09 per common share
payable on September 12, 2008 to stockholders of record as of September 2,
2008.


Financing:

In June 2008, Navios Holdings entered into a new term loan agreement with
DnB Nor Bank ASA of up to $133.0 million to finance the construction of two
capesize bulk carriers scheduled to be delivered in March and June 2010. The
term of the loan is 8 years and commences upon delivery of the vessels. The
interest rate of the facility is LIBOR plus a margin of 100 basis points.


Sale of Navios Aurora I:

On July 1, 2008, Navios Holdings sold the Navios Aurora I, a 75,397 dwt
Panamax vessel built in 2005, to Navios Partners for approximately $80.0
million, consisting of $35.0 million cash and 3,131,415 common units. The
number of the common units issued was calculated using the $14.3705 volume
weighted average trading price for the 10 business days immediately before the
closing date. Following the sale of Navios Aurora I, Navios Holdings owns a
51.6% equity interest in Navios Partners which includes 2% general partner
interest.


Acquisition of Vessels:

In June 2008, Navios Holdings entered into agreements to buy two Ultra
Handymaxes for total consideration of approximately $152.5 million. The first
is a 2007 built, 55,728 dwt, vessel built in Japan, expected to be delivered
by October of 2008. The second is a 2009 built, 58,500 dwt, vessel built at
Tsuneishi-Cebu, expected to be delivered in the first quarter of 2009.


Update on Navios Maritime Acquisition Corporation:

The initial public offering of Navios Maritime Acquisition Corp. priced on
June 25, 2008 and closed on July 1, 2008. The offering raised gross proceeds
of $253.0 million. The units, common shares and warrants trade on the NYSE
under the symbols NNA.U, NNA, and NNA WS, respectively. Navios Holdings has a
19% ownership position in Navios Maritime Acquisition Corp. In addition,
Navios Holdings has purchased 7.6 million warrants for $1 per warrant.


Update on Navios South American Logistics:

Navios Logistics acquired a total of 6 push boats, 108 dry barges and 3
self-propelled barges anticipated to be fully operational sometime during the
fourth quarter of 2008.

Navios Logistics also took delivery of Estefania H on July 25, 2008, a
12,000 dwt Product Oil Tanker, built in 2008 which was employed as of August
2, 2008.


Changes in Capital Structure

Share Repurchase Program: On February 14, 2008, the Board of Directors
approved a share repurchase program of up to $50.0 million of the Navios
Holdings' common stock. Share repurchases have been made pursuant to a program
adopted under Rule 10b5-1 under the Securities Exchange Act. As of August 18,
2008, a total of 3,164,440 shares had been repurchased under this program, for
total consideration of approximately $29.0 million.

Warrant Exercises: During the six months ended June 30, 2008, the Company
issued 898,775 shares of common stock following the exercise of warrants. The
exercise of these warrants generated $4.5 million of cash proceeds.

As of June 30, 2008, Navios Holdings had 106,350,115 shares of common
stock outstanding and 6,903,930 warrants remaining outstanding. The warrants
expire in accordance with their terms on December 9, 2008.


Financial Highlights

-- Revenues increased by 161% to $354.4 million in the second quarter of
2008 from $135.9 million in the same period in 2007

-- Adjusted EBITDA increased by 6% to $48.2 million in the second quarter
of 2008 from $45.6 million for the same period in 2007

-- Net debt to book capitalization was 21.7% at June 30, 2008 compared
with 7.4% at December 31, 2007

-- Shareholders' Equity increased by 10.6% to $850.4 million at June 30,
2008 compared with $769.2 million at December 31, 2007



For the following results and the selected financial data presented
herein, Navios Holdings has compiled consolidated statement of income for the
three and six month periods ended June 30, 2008 and 2007. The quarterly and
six month period 2008 and 2007 information was derived from the unaudited
condensed 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.




Second Quarter 2008 Results (in thousands of US Dollars):

Three Months Three Months
ended ended
June 30, 2008 June 30, 2007

Revenue $354,432 $135,865
EBITDA $46,175 $42,641
Adjusted EBITDA (*) $48,217 $45,578
Net income $79,166 $23,182
Adjusted Net income (**) $23,960 $26,119
EPS $0.72 $0.24
Adjusted EPS(**) $0.22 $0.27

(*) Adjusted EBITDA for the three months ended June 30, 2008 and 2007
include $2.0 million and $2.9 million, respectively, related to
finance lease accounting (treating a portion of vessels' earnings as
a repayment of capital).
(**) Adjusted Net income and Adjusted EPS for the three months ended June
30, 2008 do not include the effect of a $57.3 million write-off of
deferred Belgian taxes but do include $2.0 million and $2.9 million
for the three months ended June 30, 2008 and 2007, respectively,
related to finance lease accounting (treating a portion of vessels'
earnings as a repayment of capital).




Revenue from vessels operations for the three months ended June 30, 2008
was $328.9 million as compared to $132.5 million for the same period during
2007. The increase in revenue is mainly attributable to the increase in TCE
per day and the increase in the available days of the fleet in 2008 as
compared to 2007. The achieved TCE rate per day, excluding FFAs, increased
113.2% from $22,193 per day in the second quarter of 2007 to $47,313 per day
in the same period of 2008. The available days for the fleet increased by
44.1% to 5,987 in the second quarter of 2008 from 4,155 days in the same
period of 2007.

Revenue from the logistics business was approximately $25.5 million for
the three months ended June 30, 2008 as compared to $3.4 million during the
same period of 2007. This is due to the acquisition of Horamar Group in
January 2008.

EBITDA for the second quarter of 2008 and 2007 was $46.2 million and $42.6
million, respectively. EBITDA for the quarters do not include $2.0 million and
$2.9 million, respectively, related to finance lease accounting (treating a
portion of vessels' earnings as a repayment of capital). Taking into account
these items, Adjusted EBITDA for the second quarter of 2008 would have been
$48.2 million as compared to $45.6 million for the same period in 2007. The
increase in Adjusted EBITDA of $2.6 million was primarily due to an increase
in revenue by $218.6 million from $135.9 million in the second quarter of 2007
to $354.4 million for the same period in 2008, a decrease in direct vessel
expenses (excluding the amortization of deferred dry dock and special survey
costs) by $1.0 million from $7.4 million in the second quarter of 2007 to $6.4
million for the same period in 2008, an increase in equity in net earnings
from affiliated companies by $5.9 million and a decrease in other expense of
$1.6 million. This overall favorable variance of $227.1 million was mitigated
mainly by a decrease in gain of FFA trading by $0.8 million from $7.2 million
for the second quarter of 2007 to $6.4 million for the same period in 2008, an
increase in time charter, voyage and port terminal expenses by $216.7 million
from $90.2 million in the second quarter of 2007 to $306.9 million for the
same period in 2008, an increase in general and administrative expenses by
$4.3 million from $4.6 million in the second quarter of 2007 to $8.9 million
for the same period in 2008 (excluding the $0.7 million share-based
compensation for the second quarter of 2008), a decrease of $0.9 million
relating to finance lease accounting described herein, an increase in minority
interest of $1.3 million and a net decrease of $0.5 million in all other
categories (interest income from investments in finance leases, other income
and gain on sale of assets).

Net income for the second quarter ended June 30, 2008 was $79.2 million as
compared to $23.2 million for the comparable period in 2007. Net income for
the quarter of 2008 includes a $57.3 million write-off of deferred Belgian
taxes and excludes $2.0 million relating to finance lease accounting. Net
income for the second quarter of 2007 excludes $2.9 million relating to
finance lease accounting. Adjusting for these items, net income for the second
quarter of 2008 and 2007 would have been $24.0 million and $26.1 million,
respectively. The decrease of Adjusted Net income by $2.1 million was mainly
affected by a $6.4 million increase in depreciation and amortization expense,
and a $0.7 million increase in share-based compensation expense. This was
mitigated by a $2.6 million increase in Adjusted EBITDA, the increase in
interest income by $1.3 million, the $0.4 million decrease in interest expense
and the $0.7 million decrease in income taxes.


First Half of 2008 Results (in thousands of US Dollars):



Six Months Six Months
ended ended
June 30, 2008 June 30, 2007

Revenue $692,708 $237,003
EBITDA $84,173 $77,213
Adjusted EBITDA (*) $88,742 $81,654
Net income $93,411 $37,965
Adjusted Net income (**) $40,731 $42,407
EPS $0.84 $0.38
Adjusted EPS (**) $0.37 $0.47

(*) Adjusted EBITDA for the six months ended June 30, 2008 and 2007
includes $4.6 million and $4.4 million respectively, related to
finance lease accounting (treating a portion of vessels' earnings as
a repayment of capital).
(**) Adjusted Net income and Adjusted EPS for the six months ended June
30, 2008 do not include effect of a $57.3 million write-off of
deferred Belgian taxes but do include $4.6 million and $4.4 million
for the six months ended June 30, 2008 and 2007, respectively,
related to finance lease accounting (treating a portion of vessels'
earnings as a repayment of capital).




Revenue from vessels operations for the six months ended June 30, 2008 was
$645.7 million as compared to $232.1 million for the same period during 2007.
The increase in revenue is mainly attributable to the increase in TCE per day
and the increase in the available days of the fleet in 2008 as compared to
2007. The achieved TCE rate per day, excluding FFAs, increased 114.0% from
$21,881 per day in the first half of 2007 to $46,824 per day in the same
period of 2008. The available days for the fleet increased by 51.6% to 12,000
days in the first half of 2008 from 7,917 days in the same period of 2007.

Revenue from the logistics business was approximately $47.0 million in the
first half of 2008 as compared to $4.9 million during the same period of 2007.
This is due to the acquisition of Horamar group in January 2008.

EBITDA for the first half of 2008 and 2007 was $84.2 million and $77.2
million, respectively. EBITDA for the quarters do not include $4.6 million and
$4.4 million respectively, related to finance lease accounting (treating a
portion of vessels' earnings as a repayment of capital). Taking into account
this item, Adjusted EBITDA for the first half of 2008 would have been $88.7
million as compared to $81.7 million for the same period in 2007. The increase
in Adjusted EBITDA of $7.0 million was primarily due to an increase in revenue
by $455.7 million from $237.0 million in the first half of 2007 to $692.7
million for the same period in 2008, an increase in gain of FFA trading by
$1.3 million from $10.0 million for the first half of 2007 to $11.3 million
for the same period in 2008, a decrease in direct vessel expenses (excluding
the amortization of deferred dry dock and special survey costs) by $1.6
million from $13.2 million in the first half of 2007 to $11.6 million for the
same period in 2008, an increase in equity in net earnings from affiliated
companies by $7.1 million, a gain of $2.8 million from the sale of assets in
the first half of 2008 and a net increase of $0.1 million in all other
categories (interest income from investments in finance leases and finance
lease accounting). This overall favorable variance of $468.5 million was
mitigated mainly by the increase in time charter, voyage and port terminal
expenses by $450.0 million from $150.6 million in the first half of 2007 to
$600.6 million for the same period in 2008, an increase in general and
administrative expenses by $8.4 million from $8.8 million in the first half of
2007 to $17.2 million for the same period in 2008 (excluding the $1.5 million
share-based compensation for the first half of 2008), an increase in minority
interest by $1.8 million and a decrease of $1.3 million in net other expenses.

Net income for the first half of 2008 was $93.4 million as compared to
$38.0 million for the comparable period in 2007. Net income for the first half
of 2008 includes a $57.3 million write-off of deferred Belgian taxes and
excludes $4.6 million related to finance lease accounting. Net income for the
first half of 2007 excludes $4.4 million relating to finance lease accounting.
Adjusting for these items, net income for the first half of 2008 and 2007
would have been $40.7 million and $42.4 million, respectively. The decrease of
Adjusted Net income by $1.7 million was mainly affected by a $13.7 million
increase in depreciation and amortization expense and a $1.5 million increase
in share-based compensation expense. This was mitigated by a $7.0 million
increase in Adjusted EBITDA, the increase in interest income by $2.5 million,
the $1.6 million decrease in interest expense and the $2.4 million decrease in
income taxes.


Time Charter Coverage:

Navios Holdings has extended its long-term fleet employment by entering
into agreements to charter out vessels for periods ranging from one to five
years. As a result, as of August 19, 2008, Navios Holdings has currently
contracted 98.6%, 68.7% and 47.0% of its available days on a charter-out basis
for 2008, 2009 and 2010, respectively, equivalent to $217.3 million, $204.4
million and $213.4 million in revenue, respectively. The average contractual
daily charter-out rate for the core fleet is $24,760, $32,594 and $35,726 for
2008, 2009 and 2010, respectively. The average daily charter-in rate for the
active long term charter-in vessels for 2008 is $9,727.

The above figures do not include vessels servicing the COA business.


Purchase Option:

Navios Holdings has options to acquire four of the 17 chartered-in vessels
currently in operation within the next two years (two Ultra-Handymaxes, one
Panamax and one Capesize) and 16 of the 19 long-term chartered-in vessels on
order (on 11 of the 16 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
six month periods ended June 30, 2008 and 2007.




Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)

Available Days(1) 5,987 4,155 12,000 7,917
Operating Days(2) 5,970 4,155 11,979 7,916
Fleet Utilization(3) 99.7% 100% 99.8% 100%
Time Charter Equivalent
including FFAs(4) $48,390 $23,909 $47,769 $23,150
Time Charter Equivalent
excluding FFAs(4) $47,313 $22,193 $46,824 $21,881

(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 is 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, or TCE, are defined as voyage and time
charter revenues plus gains or losses on FFAs less voyage expenses
during a relevant period divided by the number of available days
during the period.




Fleet Profile:

Navios Holdings controls a fleet of 62 vessels totaling 5.8 million dwt,
of which 26 are owned and 36 are chartered-in under long term charters. The
company currently operates 33 vessels totaling 2.6 million dwt and has 29
newbuildings to be delivered. One of these vessels is expected to be delivered
in 2008 and the remaining 28 at various dates through 2013. The average age of
the operating fleet is 4.5 years.

Exhibit 2 displays the "core fleet" profile of Navios Holdings.


Conference Call:

As already announced, tomorrow, Wednesday, August 20, 2008 at 8:30 am EDT,
the Company's members of senior management will host a conference call to
provide highlights and commentary on the second quarter and first half of
2008.

A supplemental slide presentation will be available on the Navios Holdings
website at http://www.navios.com under the "Investors" section at 7:45 am EDT
on the day of the call. The conference call details are as follows:


Call Date/Time: Wednesday, August 20, 2008; 8:30 am EDT

Call Title: Navios Maritime Holdings Inc. Q2 2008 Financial Results
Conference Call


US Dial In: +1.800.860.2442

International Dial In: +1.412.858.4600


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: +1.877.344.7529
US Replay Passcode: 422280#

International Replay Dial In: +1.412.317.0088
International Replay Passcode: 422280#


This call will be simultaneously Webcast at the following Web address:
http://services.choruscall.com/links/navios080820.html. 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 our website:
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.


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
investors@navios.com



EXHIBIT 1
NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of US Dollars - except per share data)

June 30, December 31,
2008 2007
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $284,260 $427,567
Restricted cash 84,244 83,697
Accounts receivable, net of allowance
for doubtful accounts of $5,733 as at
June 30, 2008 and $5,675 as at
December 31, 2007 104,168 104,968
Short term derivative asset 173,163 184,038
Short term backlog asset 132 2,454
Due from affiliate companies 848 4,458
Prepaid expenses and other current assets 55,916 41,063
Total current assets 702,711 848,245
Deposit for vessels acquisitions 287,647 208,254
Vessels, port terminal and other
fixed assets, net 652,816 425,591
Long term derivative assets 3,343 90
Deferred financing costs, net 13,236 13,017
Deferred dry dock and special survey costs, net 4,526 3,153
Investments in leased assets 19,273 58,756
Other long term assets 6,327 -
Investments in affiliates 4,253 1,079
Long term backlog asset - 44
Intangible assets other than goodwill 360,404 341,965
Goodwill and other intangible assets 135,998 70,810
Total non-current assets 1,487,823 1,122,759
Total assets $2,190,534 $1,971,004
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $102,809 $106,665
Accrued expenses 45,557 37,926
Deferred voyage revenue 19,795 31,056
Short term derivative liability 226,547 256,961
Deferred tax liability - 3,663
Current portion of long term debt 14,160 14,220
Total current liabilities 408,868 450,491
Senior notes, net of discount 298,243 298,149
Long term debt, net of current portion 393,835 301,680
Unfavorable lease terms 87,538 96,217
Long term liabilities 858 638
Deferred tax liability 25,592 53,807
Long term derivative liability 1,620 818
Total non-current liabilities 807,686 751,309
Total liabilities 1,216,554 1,201,800
Minority interest 123,575 -
Commitments and contingencies
Stockholders' equity
Preferred stock - $0.0001 par value,
authorized 1,000,000 shares. None issued - -
Common stock - $0.0001 par value, authorized
250,000,000 shares, issued and outstanding
106,350,115 and 106,412,429 as of June 30, 2008
and December 31, 2007, respectively 11 11
Additional paid-in capital 533,143 536,306
Accumulated other comprehensive loss (9,795) (19,939)
Retained earnings 327,046 252,826
Total stockholders' equity 850,405 769,204
Total liabilities and stockholders' equity $2,190,534 $1,971,004



NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of US Dollars - except share and per share data)

Three Month Three Month
Period ended Period ended
June 30, June 30,
2008 2007
(unaudited) (unaudited)

Revenue $354,432 $135,865
Gain on forward freight agreements 6,448 7,196
Time charter, voyage and port
terminal expenses (306,940) (90,204)
Direct vessel expenses (6,885) (7,866)
General and administrative expenses (9,560) (4,562)
Depreciation and amortization (13,837) (7,421)
Gain on sale of assets/partial
sale of subsidiary 174 -
Interest income from investments
in finance lease 825 1,086
Interest income 2,838 1,565
Interest expense and finance cost, net (12,145) (12,528)
Other income 158 571
Other expense 1,343 (274)
Income before equity in net earnings of
affiliate companies and joint venture 16,851 23,428
Equity in net earnings of affiliated
companies and joint venture 6,257 388
Income before taxes and minority interests 23,108 23,816
Income taxes 57,360 (634)
Income before minority interests 80,468 23,182
Minority interest (1,302) -
Net income $79,166 $23,182
Earnings per share, basic $0.75 $0.26
Weighted average number of shares, basic 105,990,135 88,475,428
Earnings per share, diluted $0.72 $0.24
Weighted average number of shares, diluted 110,452,110 95,895,877


Six Month Six Month
Period ended Period ended
June 30, June 30,
2008 2007
(unaudited) (unaudited)

Revenue $692,708 $237,003
Gain on forward freight agreements 11,336 10,050
Time charter, voyage and port
terminal expenses (600,638) (150,644)
Direct vessel expenses (12,518) (14,024)
General and administrative expenses (18,695) (8,855)
Depreciation and amortization (27,442) (13,694)
Gain on sale of assets/partial
sale of subsidiary 2,748 -
Interest income from investments in
finance lease 1,625 1,646
Interest income 5,577 3,088
Interest expense and finance cost, net (24,376) (25,999)
Other income 177 739
Other expense (1,504) (748)
Income before equity in net earnings of
affiliate companies and joint venture 28,998 38,562
Equity in net earnings of affiliated
companies and joint venture 8,336 1,216
Income before taxes and minority interests 37,334 39,778
Income taxes 57,868 (1,813)
Income before minority interests 95,202 37,965
Minority interest (1,791) -
Net income $93,411 $37,965
Less:
Incremental fair value of securities
offered to induce warrants exercise - (4,195)
Income available to common shareholders $93,411 $33,770
Earnings per share, basic $0.88 $0.41
Weighted average number of shares, basic 106,181,035 82,400,161
Earnings per share, diluted $0.84 $0.38
Weighted average number of shares, diluted 110,574,248 89,450,525



NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of US Dollars)

Six Month Six Month
Period ended Period ended
June 30, June 30,
2008 2007
(unaudited) (unaudited)

Net cash provided by operating activities $63,549 $80,194
INVESTING ACTIVITIES:
Acquisition of vessels (39,161) (44,490)
Deposits for vessel acquisitions (81,444) -
Restricted cash for assets acquisition (34,506) -
Acquisition of subsidiary, net of
cash acquired (105,069) (145,436)
Deposit in escrow in connection with
the acquisition of subsidiary (5,000) -
Proceeds from sale of assets 35,088 -
Receipts from finance lease 4,569 4,442
Purchase of property and equipment (36,885) (202)
Net cash used in investing activities (262,408) (185,686)
FINANCING ACTIVITIES:
Proceeds from long term loan, net of
deferred finance fees 104,089 137,075
Repayment of long term debt (24,710) (138,835)
Dividends paid (19,191) (12,148)
Acquisition of treasury stock (9,130) -
Issuance of common stock 4,494 217,975
Net cash provided by financing activities 55,552 204,067
Increase (decrease) in cash and
cash equivalents (143,307) 98,575
Cash and cash equivalents,
beginning of period 427,567 99,658
Cash and cash equivalents, end of period $284,260 $198,233
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for interest $21,328 $28,355




Disclosure of Non-GAAP Financial Measures

EBITDA: EBITDA represents net income before interest, taxes, depreciation
and amortization. Navios Holdings uses EBITDA because Navios Holdings believes
that EBITDA is a basis upon which liquidity can be assessed and because Navios
Holdings believes that EBITDA presents useful information to investors
regarding Navios Holdings' ability to service and/or incur indebtedness.
Navios Holdings also uses EBITDA (i) by prospective and current lessors as
well as potential lenders to evaluate potential transactions; and (iii) to
evaluate and price potential acquisition candidates.

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 Reconciliation to Cash from Operations



Three Months Ended
(in thousands of US Dollars) June 30, June 30,
2008 2007

Net cash provided by operating activities $53,930 $29,188
Net increase in operating assets 3,272 44,452
Net increase in operating liabilities (19,826) (48,186)
Net interest cost 9,306 10,963
Deferred finance charges (461) (484)
Unrealized gain (loss) on FFA derivatives
and interest rate swaps (2,863) 5,293
Earnings in affiliates and joint ventures,
net of dividends received 3,460 86
Payments for drydock and special survey 485 1,329
Minority interest (1,302) -
Gain on sale of assets/partial sale
of subsidiary 174 -
EBITDA $46,175 $42,641


Six Months Ended
(in thousands of US Dollars) June 30, June 30,
2008 2007

Net cash provided by operating activities $63,549 $80,194
Net increase (decrease) in operating assets (37,160) 59,636
Net (increase) decrease in operating
liabilities 36,668 (89,780)
Net interest cost 18,799 22,911
Deferred finance charges (925) (931)
Provision for losses on accounts receivable - 550
Unrealized gain (loss) on FFA derivatives
and interest rate swaps (3,167) 2,692
Earnings in affiliates and joint ventures,
net of dividends received 3,164 538
Payments for drydock and special survey 2,288 1,403
Minority interest (1,791) -
Gain on sale of assets/partial sale
of subsidiary 2,748 -
EBITDA $84,173 $77,213



EXHIBIT 2

FLEET PROFILE (CORE FLEET)

Owned Vessels

Deadweight
Year (in metric
Vessel Name(1) Vessel Type Built tons)

Navios Ionian Ultra Handymax 2000 52,068
Navios Apollon Ultra Handymax 2000 52,073
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 Magellan Panamax 2000 74,333
Navios Star Panamax 2002 76,662
Navios Hyperion Panamax 2004 75,707
Navios Orbiter Panamax 2004 76,602
Navios Aurora I(2) Panamax 2005 75,397
Navios Asteriks Panamax 2005 76,801
Vanessa Product Handysize 2002 19,078


Owned Vessels to be delivered

Deadweight
Delivery (in metric
Vessel Name Vessel Type Date tons)

Navios Ulysses Ultra Handymax 10/2008 55,728
Navios TBN Ultra Handymax 03/2009 58,500
Navios TBN Capesize 08/2009 172,000
Navios TBN(3) Capesize 10/2009 180,000
Navios TBN Capesize 10/2009 180,000
Navios TBN Capesize 11/2009 172,000
Navios TBN Capesize 11/2009 172,000
Navios TBN Capesize 11/2009 172,000
Navios TBN Capesize 01/2010 172,000
Navios TBN Capesize 02/2010 172,000

(1) Capesize vessel Obeliks was sold for approximately $35.1 million in Q2
2008.
(2) On July 1, 2008, the vessel was sold to Navios Partners for
approximately $80.0 million.
(3) Navios Partners has the option to acquire this vessel for $135.0
million.



Long-term Chartered-in Fleet in Operation

Deadweight
Year (in metric Purchase
Vessel Name Vessel Type Built tons) Option(1)

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 Cielo Panamax 2003 75,834 No
Navios Orion Panamax 2005 76,602 No
Navios Titan Panamax 2005 82,936 No
Navios Sagittarius Panamax 2006 75,756 Yes
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
Navios Armonia(2) Ultra Handymax 2008 55,100 No



Long-term Chartered-in Fleet to be Delivered

Deadweight
Delivery (in metric Purchase
Vessel Name Vessel Type Date tons) Option

Phoenix Grace Capesize 01/2009 170,500 No
Phoenix Beauty Capesize 11/2009 170,500 No
Navios TBN Handysize 03/2010 35,000 Yes(3)
Kleimar TBN Capesize 04/2010 176,800 No
Navios TBN Handysize 08/2010 35,000 Yes(3)
Navios TBN Kamsarmax 08/2010 81,000 Yes(3)
Navios TBN Kamsarmax 09/2010 81,000 Yes(3)
Navios TBN Kamsarmax 11/2010 81,000 Yes(3)
Navios TBN Handysize 01/2011 35,000 Yes(3)
Navios TBN Kamsarmax 01/2011 81,000 Yes(3)
Navios TBN Kamsarmax 02/2011 81,000 Yes(3)
Navios TBN Kamsarmax 03/2011 81,000 Yes(3)
Navios TBN Handysize 05/2011 35,000 Yes(3)
Navios TBN Handysize 06/2011 35,000 Yes(3)
Navios TBN Panamax 09/2011 80,000 Yes
Navios TBN Capesize 09/2011 180,200 Yes
Navios TBN Ultra Handymax 03/2012 60,000 Yes
Kleimar TBN Capesize 07/2012 180,000 Yes
Navios TBN Kamsarmax 01/2013 82,100 Yes

(1) Generally, Navios Holdings may exercise its purchase option after
three to five years of service.
(2) The vessel was delivered on June 6, 2008.
(3) The initial 50% purchase option on each vessel is held by Navios
Holdings.



SOURCE Navios Maritime Holdings Inc.


 
Tuesday, August 19, 2008 4:05 PM

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