Navios Maritime Holdings Inc. (NYSE:NM) Q2 2019 Earnings Conference Call Transcript

Sep 05, 2019 • 08:30 am ET

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Navios Maritime Holdings Inc. (NYSE:NM) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Thank you for joining us for Navios Maritime Holdings' Second Quarter 2019 Earnings Conference Call. With us today from the company are Chairman and CEO, Ms. Angeliki Frangou; Chief Financial Officer, Mr. George Achniotis; SVP of Commercial Affairs, Mr. Tom Beney; and SVP of Strategic Planning, Mr. Ioannis Karyotis.

As a reminder, this conference call is being webcast. To access the webcast, please go to the Investors Section of Navios Maritime Holdings website at www.navios.com. You'll see the webcast link in the middle of the page and a copy of the presentation referenced in today's earnings conference call can also be found there.

Now, I'll review the safe harbor statement. This conference call could contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navios Holdings. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based on the current beliefs and expectations of Navios Holdings management and are subject to risks and uncertainties, which could cause the actual results to differ from the forward-looking statements. Such risks are more fully discussed in Navios Holdings filings with the Securities and Exchange Commission. The information set forth herein, should be understood in light of such risks. Navios Holdings does not assume any obligation to update the information contained in this conference call. The agenda for today's call is as follows. We'll begin with formal remarks from the management team and after, we'll open the call to take questions.

Now I turn the call over to Navios Holdings' Chairman and CEO, Ms. Angeliki Frangou. Angeliki?

Executive
Angeliki Frangou

Thank you, Laura, and good morning to all of you joined us on today's call. I am pleased with the results for the second quarter of 2019. For the second quarter of 2019, we reported revenue of $147.2 million and adjusted EBITDA of $62.6 million. Charter rate in the dry bulk sector have recovered after the tragic dam collapse in Brazil in January of this year. The Capesize 5TC rate is currently over $35,000 per day while NM and time charter equivalent rate of $10,500 per day for the second quarter of 2019.

On Slide 3, we highlighted the simplification of the Navios Group. Navios Acquisition acquired Navios Midstream in December of 2018. In the fourth quarter of 2018, we moved the listing of Navios Maritime Containers from Oslo OTC to the NASDAQ. And most recently, we sold our ship management business for $20 million in a favorable five-year services agreement.

On Slide 4, we focus on our diversified group. As you can see, Navios Partners was upgraded to B2 by Moody's following an upgrade by S&P in 2018. It has low levels with 36.4% net debt-to-book capitalization, and strong cash flow with about $635 million of contracted revenue. In addition, NMCI, a container-focused entity, has conservative leverage. NNA, a tanker company, is operating in a healthy charter rate environment.

Turning to South America, the prospects of Navios Logistics remain excellent. Vale recently increased its estimates on iron ore