PIRAEUS, Greece, March 22 - Navios Maritime Holdings Inc. ("Navios") (Nasdaq: BULK, BULKU, BULKW), a leading vertically integrated global shipping company specializing in the dry-bulk shipping industry, today reported its financial results for the fourth quarter and full year (combined) ended December 31, 2005.
Ms. Angeliki Frangou, Chairman and CEO of Navios, stated: "I am pleased by Navios' performance with respect to 2005. We have increased our owned fleet by 170%, but Navios' business goes beyond mere ownership of assets; Navios' core strength is the flexibility of its business model. The vertically integrated business enables Navios to use Forward Freight Agreements, Contracts of Affreightment and short term chartering to manage its revenue sources and business risks by tailoring unique solutions through a mix of services. We believe that the inherent flexibility of Navios' business model will, over the long term, mitigate risk in down markets and allow us to capture the potential in up markets."
For the following results and the selected financial data presented herein, Navios has compiled consolidated statement of operations for the three month period ended December 31, 2005 and 2004, combined statement of operations for the year ended December 31, 2005 (including the predecessor business from January 1, 2005 to August 25, 2005 and successor business for the period from August 26, 2005 to December 31, 2005) and consolidated statement of operations for the year ended December 31, 2004. The 2005 information was derived from the audited financial statements of the successor and predecessor. Navios has prepared this combined statement of operations information solely to enable comparisons for the years ended December 31, 2005 and 2004. The successor period in the combined statement of operations is not directly comparable to the predecessor period because it includes the effects of fair value purchase accounting adjustments. The combined information and EBITDA are non-US GAAP financial measures and should not be used in isolation or substitution for the predecessor and successor results.
Fourth Quarter 2005 Results (in thousands of US Dollars):
Successor Predecessor
Three Months ended Three Months ended
December 31, 2005 December 31, 2004
Revenues $ 55,922 $ 62,910
EBITDA $ 18,773 $ 33,362
Net income $ 1,124 $ 31,216
Navios earns revenue from both owned and chartered-in vessels, contracts of affreightment and port terminal operations. Revenues for the three months of operations ended December 31, 2005 were $55.9 million as compared to $62.9 million for the same period during 2004. The decline in revenues is mainly attributable to a decrease in the number of vessels operated by the company during the respective periods as shown in the exhibit under "Fleet Summary Data". The "Available Days" for the fleet declined 12.8% to 2,261 days for the quarter ended December 31, 2005 as compared to the same period for 2004. The "Time Charter Equivalent" rate per day, including Forward Freight Agreements (FFAs), declined 23.3% to $20,757 for the three months ended December 31, 2005 as compared to the same period for 2004.
EBITDA was $18.8 million for the fourth quarter 2005 as compared to $33.4 million for the same period of 2004. The decrease in EBITDA was primarily due to a loss in FFA trading of $1.9 million for the fourth quarter 2005 compared to a substantial gain of $15.3 million for the same period of 2004. Excluding this unfavorable variance of $17.2 million in FFA trading, EBITDA from operations was $2.6 million higher in the fourth quarter of 2005 than in the same period of 2004.
In the fourth quarter of 2005, there were $0.1 million of transaction costs incurred in connection with the sale of Navios and approximately $1.8 million of legal, audit, consulting and other fees borne by Navios as a publicly listed company. These were mitigated by a $1.3 million reduction in payroll costs.
Net income for the fourth quarter ended December 31, 2005 was $1.1 million as compared to $31.2 million for the comparable period of 2004. In addition to the reasons mentioned above, this decline is also attributable to (a) a $7.1 million increase in amortization costs related to intangible assets established on the Company's balance sheet as part of the acquisition in accordance with purchase accounting principles under US GAAP and (b) a $7.8 million increase in interest expenses due to increased indebtedness to finance the acquisition of the company in August 2005 and purchase five additional vessels since the acquisition.
Navios' cash and cash equivalents balance at December 31, 2005 was $37.7 million.
Year 2005 Results (in thousands of US Dollars):
Successor Predecessor Combined Predecessor
August 26, January 1, Year Ended Year Ended
2005 to 2005 to December 31, December 31,
December 31, August 25, 2005 2004
2005 2005
Revenues $ 76,376 $ 158,630 $ 235,006 $ 279,184
EBITDA $ 26,537 $ 55,696 $ 82,233 $ 135,967
Net income $ 2,161 $ 51,337 $ 53,498 $ 127,132
Revenues for the year ended December 31, 2005 were $235.0 million as compared to $279.2 million for the same period during 2004. This decline in revenues is mainly attributable to a decrease in the number of vessels operated by the company during the respective periods as shown in the exhibit under "Fleet Summary Data". The "Available Days" for the fleet declined 23.5% to 9,147 days for the year ended December 31, 2005 as compared to the same period for 2004. The "Time Charter Equivalent" rate per day, including FFAs, declined 12.4% to $22,771 for the year ended December 31, 2005 as compared to the same period for 2004.
EBITDA was $82.2 million for the year ended December 31, 2005 as compared to $136.0 million for the same period of 2004. This unfavorable variance in EBITDA was primarily due to substantial gains in FFA trading in the year ended December 31, 2004 of $57.7 million as compared to a gain of $0.1 million for the year ended December 31, 2005. Excluding results from FFA trading, EBITDA from operations was $3.8 million higher in the year ended December 31, 2005 than in the year ended December 31, 2004.
In the year ended December 31, 2005 there were $2.3 million of transaction costs incurred in connection with the sale of Navios, $1.4 million of one-time severance payments to the former CEO, and $1.8 million of legal, audit, consulting and other fees borne by Navios as a publicly listed company. These were mitigated by a $3.0 million reduction in payroll and office related costs for the year ended December 31, 2005.
Net income for the year ended December 31, 2005 was $53.5 million as compared to $127.1 million for the comparable period of 2004. In addition to the reasons mentioned above, this decline is also attributable to (a) a $10.0 million increase in amortization costs related to intangible assets established on the Company's balance sheet as part of the acquisition in accordance with purchase accounting principles under US GAAP and (b) a $10.1 million increase in interest expenses due to increased indebtedness to finance the acquisition of the company in August 2005 and purchase five additional vessels since the acquisition.
Restatement of Third Quarter Balances
In connection with the acquisition of Navios by International Shipping Enterprises, Inc. and the subsequent downstream merger that occurred on August 25, 2005, the Company allocated a portion of the purchase price to the fair value of favorable lease contracts associated with its vessels. Some of these lease contracts include purchase options whereby the Company can acquire the vessel for a fixed price before the end of the lease term. The portion of the intangible asset associated with the purchase option for the vessels is not amortized and when the purchase options are exercised, it will be capitalized as part of the cost of the vessel and will be depreciated over the remaining useful life of the vessel.
The Company's policy is to recognize lease expense on a straight-line basis over the lease term. The Company's calculation of lease expense for the successor period from August 26, 2005 to September 30, 2005 was inconsistent with this policy. The Company has corrected lease expense for this period to be consistent with this policy.
These resulted in non-cash adjustments that have no effect on the Company's cash flow from operations or its previously announced EBITDA or cash position or financial position. They also do not have an effect on the Predecessor periods since the adjustments relate to post-acquisition amortization periods.
These adjustments have the following impact on the Company's Q3 2005 (Successor) financial statements:
* Increase amortization expense for the Successor period August 26, 2005
to September 30, 2005 by $1.66 million.
* Reduce the intangible asset associated with the favorable leases at
September 30, 2005 by $1.66 million.
* Reduce net income for the Successor period August 26, 2005 to September
30, 2005 by $1.66 million.
The following items in the Consolidated Statement of Operations and the Consolidated Balance Sheets have been restated as follows:
Consolidated Statement of Operations
(in thousands of U.S. Dollars)
Successor
August 26, 2005 August 26, 2005
to September 30, 2005 to September 30, 2005
(Previously Reported (As Restated)
in F-1A)
Depreciation and amortization ($2,187) ($3,847)
Income before equity in net
earnings of affiliate
companies $2,569 $909
Net income $2,697 $1,037
Net income per share
Basic $0.068 $0.026
Diluted $0.054 $0.021
Consolidated Balance Sheets
(in thousands of U.S. Dollars)
Successor
September 30, 2005 September 30, 2005
(Previously Reported (As Restated)
in F-1A)
Favorable leases terms $138,780 $137,120
Total non-current assets $545,753 $544,093
Total assets $744,812 $743,152
Retained earnings $2,697 $1,037
Total stockholders' equity $186,949 $185,289
Total liabilities and
stockholders' equity $744,812 $743,152
Fleet Summary Data:
The following table reflects certain key indicators indicative of the Company's and its fleet's performance for the three month periods ended December 31, 2005 and 2004, and the years ended December 31, 2005 (combined) and 2004.
Successor Predecessor Combined Predecessor
Three Months Ended Years Ended
December 31, December 31, December 31, December 31,
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Available Days (1) 2,261 2,594 9,147 11,952
Operating Days (2) 2,253 2,558 9,110 11,900
Fleet Utilization (3) 99.6 % 98.6 % 99.6 % 99.6 %
Time Charter Equivalent
(TCE)* (4) $20,757 $27,059 $22,771 $25,985
* Including gains and losses from FFAs. While FFAs are an integral part of our shipping business they are, for accounting purposes, a distinct activity. TCE rates excluding FFAs were, for the three months ending December 31, 2005 and 2004, $21,583 and $21,178, respectively and for the year ending December 31, 2005 and 2004, $22,760 and $21,153, respectively.
(1) Available days for fleet are total calendar days the vessels were in
our 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 our 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 Employment Profile:
Following is the "core fleet" employment profile, including newbuilds to be delivered. The "core fleet" includes the owned vessels and the long term chartered-in vessels. Navios' core fleet consists of a total of 32 vessels, totaling 2.1 million deadweight tons. Eight of these vessels are scheduled to be delivered to the fleet within the next two years.
Currently, the company operates a fleet of 24 vessels of which 13 are owned and 11 are chartered-in under long-term time charters. These vessels aggregate approximately 1.55 million deadweight tons and have an average age of 4.3 years. Navios has currently fixed 78.2% of its 2006 available days on a time charter-out basis. The average daily charter-out rate for the fleet is $17,179 for 2006. The average daily charter-in rate for the long term charter-in vessels is $9,457 for 2006.
Owned Vessels
Vessels Type Built DWT Charter Expiration
Rate(1) Date (2)
Navios Ultra
Achilles Handymax 2001 52,063 15,533 10/08/2006
Navios Ultra
Apollon Handymax 2000 52,073 16,150 08/21/2007
Navios Ultra
Herakles Handymax 2001 52,061 18,050 03/15/2006
15,437 02/15/2007
Navios Ultra
Hios Handymax 2003 55,180 19,237 09/15/2006
Navios Ultra
Ionian Handymax 2000 52,068 17,212 03/01/2006
15,152 02/01/2007
Navios Ultra
Kypros Handymax 2003 55,222 24,063 04/27/2006
Navios Ultra
Meridian Handymax 2002 50,316 20,045 10/15/2006
Navios Ultra
Mercator Handymax 2002 53,400 21,175 10/01/2006
Navios
Libra II Panamax 1995 70,135 16,150 3/11/2006
17,385 07/11/2006
Navios
Alegria Panamax 2004 74,466 23,750 08/03/2006
Navios
Felicity Panamax 1997 73,867 9,144 03/25/2007
Navios
Gemini S Panamax 1994 68,636 19,000 06/15/2006
Navios Ultra
Arc Handymax 2003 53,514 17,908 04/15/2006
15,438 03/15/2007
Long Term Chartered-in Vessels
Vessels Type Built DWT Purchase Charter Expiration
Option Rate (1) Date (2)
Navios Ultra
Horizon Handymax 2001 50,346 Exercised 12,588 05/30/2006
Navios Ultra
Vector Handymax 2002 50,300 No 8,811 12/17/2007
Navios Panamax
Aurora 2005 75,200 Yes 24,063 05/27/2008
Navios
Cielo Panamax 2003 75,834 No 18,050 04/30/2006
Navios
Galaxy Panamax 2001 74,195 Exercised 24,062 12/25/2007
Navios
Hyperion Panamax 2004 75,500 Yes 15,400 01/05/2007
Navios
Magellan Panamax 2000 74,333 Exercised 18,050 03/17/2006
14,963 02/17/2007
Navios
Orbiter Panamax 2004 76,000 Yes 16,150 10/16/2006
Navios
Orion Panamax 2005 76,000 No 21,175 01/15/2007
Navios
Star Panamax 2002 76,662 Yes 15,343 01/13/2007
Navios
Titan Panamax 2005 82,300 No 20,000 10/09/2007
Long Term Chartered-in Vessels to be delivered
Vessels Type To Be Purchase DWT
Delivered Option
Navios TBN Ultra Handymax 05/2006 Yes 53,500
Navios TBN Panamax 08/2006 No 82,800
Navios TBN Panamax 01/2007 Yes 75,500
Navios TBN Ultra Handymax 04/2007 Yes 53,500
Navios TBN Panamax 09/2007 Yes 82,000
Navios TBN Panamax 11/2007 No 75,200
Navios TBN Panamax 03/2008 Yes 76,500
Navios TBN Ultra Handymax 05/2008 No 55,100
(1) Time Charter Rate per day net of commissions
(2) Estimated dates assuming earliest redelivery by charterers
Dividend:
Navios has already announced that its Board of Directors has declared the company's quarterly cash dividend of $0.0666 per common share, payable on March 13, 2006 to stockholders of record as of February 27, 2006.
Conference Call:
As already announced, today, Wednesday, March 22, 2006 at 08:30 AM EST, the Company's management will host a conference call to discuss the results.
Participants should dial into the call 10 minutes before the scheduled time using the following numbers: (800) 309-9171 (from the US) or (706) 643-3639 (from outside the US). Pass code: 6683465
A telephonic replay of the conference call will be available until Wednesday, March 29, 2006 by dialing (800) 642-1687 (from the US) or (706) 645-9291 (from outside the US). Pass code: 6683465
Webcast:
This call will simultaneously be Webcast at the following Web address:
http://www.videonewswire.com/event.asp?id=32868
The Webcast will be archived and available at this same Web address for one year following the call.
ABOUT NAVIOS MARITIME HOLDINGS INC.
On August 25, 2005, pursuant to a Stock Purchase Agreement dated February 28, 2005, as amended, by and among International Shipping Enterprises, Inc. ("ISE"), Navios Maritime Holdings Inc. ("Navios") and all the shareholders of Navios, ISE acquired Navios through the purchase of all of its outstanding shares of common stock. As a result of this acquisition, Navios became a wholly-owned subsidiary of ISE. In addition, on August 25, 2005, simultaneously with the acquisition of Navios, ISE effected a reincorporation from the State of Delaware to the Republic of the Marshall Islands through a downstream merger with and into its newly acquired wholly-owned subsidiary, whose name was and continued to be Navios Maritime Holdings Inc.
Navios owns and operates a fleet of nine Ultra Handymax and four Panamax vessels. It also time charters in and operates a fleet of two Ultra Handymax and nine Panamax vessels that are employed to provide worldwide transportation of bulk commodities on a long term basis. Furthermore, it also operates a port and transfer terminal located in Nueva Palmira, Uruguay. The facility consists of docks, conveyors and silo storage capacity totaling 270,440 tons. The owned fleet has a total capacity of 763,001 dwt and an average age of approximately 5.4 years. Of the 11 chartered-in vessels, Navios has options to acquire seven of them, two of which are expected to be delivered in the week starting March 20, 2006 and one in the first week of April 2006, thereby increasing the owned fleet capacity by 198,874 dwt. Furthermore, it also has eight long term chartered-in vessels scheduled to be delivered on various dates from May 2006 to May 2008. Navios has options to purchase five of these vessels.
Forward Looking Statements
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 the Company's 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 the Company 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 the Company. 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 the Company operates; risks associated with operations outside the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company 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 the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED BALANCE SHEETS
(expressed in thousands of US Dollars)
Successor Predecessor
December 31, December 31,
2005 2004
ASSETS
Current Assets
Cash and cash equivalents $ 37,737 $ 46,758
Restricted cash 4,086 3,513
Accounts receivable, net 13,703 15,200
Short term derivative assets 45,556 109,310
Short term backlog assets 7,019 -
Prepaid expenses and other current assets 6,438 13,163
Total current assets 114,539 187,944
Deposit on exercise of vessels purchase options 8,322 -
Vessels, port terminal and other fixed
assets, net 365,997 138,199
Fixed assets under construction - 2,794
Long term derivative assets 28 708
Deferred financing costs, net 11,677 425
Deferred dry dock and special survey costs, net 2,448 435
Investments in affiliates 657 557
Long term back log asset 7,744 -
Trade name 89,014 2,004
Port terminal operating rights 30,728 -
Favorable lease terms 117,440 -
Goodwill 40,789 226
Total non-current assets 674,844 145,348
Total Assets $ 789,383 $ 333,292
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 13,886 $ 14,883
Accrued expenses 11,253 7,117
Deferred voyage revenue 6,143 15,135
Short term derivative liability 39,992 65,392
Short term backlog liability 8,109 -
Current portion of long term debt 54,221 1,000
Total current liabilities 133,604 103,527
Long term debt, net of current portion 439,179 49,506
Long term liabilities 2,297 3,024
Long term derivative liability 598 2,444
Long term backlog liability 5,947 -
Total non-current liabilities 448,021 54,974
Total liabilities 581,625 158,501
Commitments and Contingencies
Stockholders' Equity
Successor
Preferred stock -- $0.0001 par value,
authorized 1,000,000 shares. None issued - -
Common stock -- $ 0.0001 par value, authorized
120,000,000 shares, issued and
outstanding 44,239,319 4 -
Predecessor
Common stock - $0.10 par value - authorized,
issued and outstanding 874,584 shares - 87
Additional paid-in capital 205,593 60,570
Legal Reserve, restricted - 289
Retained earnings 2,161 113,845
Total stockholders' equity 207,758 174,791
Total Liabilities and Stockholders' Equity $ 789,383 $ 333,292
NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(expressed in thousands of US Dollars - except per share data)
Successor Predecessor Combined Predecessor
August 26, January 1, Year Year
2005 2005 Ended Ended
To To December 31, December 31,
December 31, August 25, 2005 2004
2005 2005
Revenue $ 76,376 $ 158,630 $ 235,006 $ 279,184
Gain (loss) on Forward
Freight Agreements (2,766) 2,869 103 57,746
Time charter, voyage and
port terminal expenses (39,530) (91,806) (131,336) (180,026)
Direct vessel expenses (3,137) (5,650) (8,787) (8,224)
General and
administrative expenses (4,582) (9,964) (14,546) (12,722)
Depreciation and
amortization (13,582) (3,872) (17,454) (5,925)
Gain on sale of vessels - - - 61
Interest income 1,163 1,350 2,513 789
Interest expense and
finance cost, net (11,892) (1,677) (13,569) (3,450)
Other income 52 1,426 1,478 374
Other expense (226) (757) (983) (1,438)
Income before equity in
net earning of affiliate
companies 1,876 50,549 52,425 126,369
Minority Interest - - -
Equity in net Earnings
of Affiliated Companies 285 788 1,073 763
Net income $ 2,161 $ 51,337 $ 53,498 $ 127,132
Earnings per share,
basic $ 0.05 $ 58.70 $ 139.83
Weighted average number
of shares, basic 40,189,356 874,584 909,205
Earnings per share,
diluted $ 0.05 $ 58.70 $ 139.83
Weighted average number
of shares, diluted 45,238,544 874,584 909,205
Successor Predecessor
Three Months Three Months
ended ended
December 31, December 31,
2005 2004
Revenue $ 55,922 $ 62,910
Gain (loss) on Forward Freight
Agreements (1,868) 15,254
Time charter, voyage and port
terminal expenses (29,351) (38,532)
Direct vessel expenses (2,278) (2,106)
General and administrative expenses (3,717) (3,422)
Depreciation and amortization (9,735) (1,487)
Interest income 921 303
Interest expense and finance cost,
net (8,714) (901)
Gain on sale of vessels - 61
Other income 407 -
Other expense (620) (1,014)
Income before equity in net earning
of affiliate companies 967 31,066
Minority Interest -
Equity in net Earnings of Affiliated
Companies 157 150
Net income $ 1,124 $ 31,216
Earnings per share, basic $ 0.03 $ 35.69
Weighted average number of shares,
basic 40,302,583 874,584
Earnings per share, diluted $ 0.03 $ 35.69
Weighted average number of shares,
diluted 43,304,873 874,584
NAVIOS MARITIME HOLDINGS INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(expressed in thousands of US Dollars)
Successor Predecessor Predecessor
August 26, January 1, Year
2005 2005 Ended
To To December 31,
December 31, August 25, 2004
2005 2005
OPERATING ACTIVITIES
Net income $ 2,161 $ 51,337 $ 127,132
Adjustments to reconcile net
income to net cash
provided by operating
activities:
Depreciation and amortization 13,582 3,872 5,925
Amortization of deferred
financing cost 1,253 425 773
Amortization of deferred dry
dock costs 143 160 249
Amortization of backlog (78) - -
Provision for losses on
accounts receivable 411 (880) (573)
(Gain) on sale of fixed assets - - (61)
Unrealized (gain)/loss on FFA
derivatives 17,074 23,793 (599)
Unrealized (gain)/loss on
foreign exchange contracts (212) 338 44
Unrealized (gain)/loss on
interest rate swaps (384) (403) 301
Earnings in affiliates, net of
dividends received (285) 185 (64)
Changes in operating assets
and liabilities:
Decrease (increase) in
restricted cash 433 (1,005) (281)
(Increase) decrease in
accounts receivable (9,193) 11,768 2,721
Decrease (increase) in
prepaid expenses and other 2,896 3,762 4,755
(Decrease) increase in
accounts payable (1,321) (10,172) 708
Increase (decrease) in accrued
expenses 2,332 (1,229) 191
(Decrease) increase in
deferred voyage revenue (3,961) (5,032) (1,833)
(Decrease) increase in long
term liability (275) (451) 148
Increase (decrease) in
derivative accounts 1,505 (4,523) (2,318)
Net cash provided by operating
activities 26,081 71,945 137,218
INVESTING ACTIVITIES:
Deposit on exercise of vessel
purchase options (8,322) - -
Deferred drydock and special
survey costs (1,710) - -
Acquisition of vessels (110,831) - -
Purchase of property and
equipment (294) (4,264) (5,103)
Proceeds from sale of fixed
assets - - 136
Net cash used in investing
activities (121,157) (4,264) (4,967)
FINANCING ACTIVITIES:
Proceeds from long term loan 105,900 - 91,506
Repayment of long term debt (126,870) (50,506) (139,189)
Repayment of shareholders loan (8,622) - 367
Deferred financing costs (3,787) - (438)
Acquisition of common stock - - (9,000)
Redemption of preferred stock - - (15,189)
Dividends paid - - (40,000)
Cash received from downstream
merger 102,259 - -
Net cash provided (used in)
by financing activities 68,880 (50,506) (111,943)
(Decrease) increase in cash
and cash equivalents (26,196) 17,175 20,308
Cash and cash equivalents,
beginning of year 63,933 46,758 26,450
Cash and cash equivalent, end
of year $ 37,737 $ 63,933 $ 46,758
SUPPLEMENTAL DISCLOSURES OF CASH
FLOW INFORMATION
Cash paid for interest $ 9,932 $ 2,358 $ 5,159
Disclosure of Non-GAAP Financial Measures
EBITDA represents net income plus interest and finance costs plus depreciation and amortization and income taxes, if any. EBITDA is included because it is used by certain investors to measure a company's financial performance. EBITDA is a "non-GAAP financial measure" and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity. EBITDA is presented to provide additional information with respect to the Company's ability to satisfy its obligations including debt service, capital expenditures, working capital requirements and determination of dividends. While EBITDA is frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.
EBITDA Reconciliation to Cash from Operations
Three Months Ended December 31,
(in thousands of US Dollars)
Successor Predecessor
December 31, December 31,
2005 2004
Net cash provided by operating activities $ 26,609 $ 24,552
Net increase (decrease) in operating assets (418) 2,651
Net increase (decrease) in operating
liabilities (5,916) (3,928)
Net interest cost excluding finance cost 6,707 221
Provision for losses on accounts receivable (404) 17
Gain on sale of fixed assets - 61
Unrealized gain (loss) on FFA derivatives,
FECs and interest rate swaps (7,962) 9,638
Earnings in affiliates, net of dividends
received 157 150
EBITDA $ 18,773 $ 33,362
Year ended December 31,
(in thousands of US Dollars)
Successor Predecessor Predecessor
August 26, January 1, Year ended
2005 to 2005 to December 31,
December August 26, 2004
31, 2005 2005
Net cash provided by operating
activities $ 26,081 $ 71,945 $ 137,218
Net increase (decrease) in
operating assets 5,864 (14,525) (7,195)
Net (increase) decrease in
operating liabilities 1,721 21,407 3,104
Net interest cost excluding
finance cost 9,476 (98) 1,888
Provision for losses on
accounts receivable (411) 880 573
Gain/loss on sale of fixed
assets - - 61
Unrealized gain (loss) on FFA
derivatives, FECs and interest
rate swaps (16,479) (23,728) 254
Earnings in affiliates, net of
dividends received 285 (185) 64
EBITDA $ 26,537 $ 55,696 $ 135,967
