Navios Maritime Holdings (
Q4 2011 Earnings Call
February 23, 2012 8:30 am ET
Angeliki Frangou – Chairman & Chief Executive Officer
Ted C. Petrone – President
Ioannis Karyotis – Senior Vice President, Strategic Planning
George Achniotis – Chief Financial Officer
Natasha Boyden – Cantor Fitzgerald
Christian F Wetherbee – Citigroup
Previous Statements by NM
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Thank you for joining us for this morning’s Navios Maritime Holdings Fourth Quarter and Full Year 2011 Earnings Call. With us today from the company are Chairman and CEO, Ms. Angeliki Frangou; President, Mr. Ted Petrone; SVP of Strategic Planning, Mr. Ioannis Karyotis; and Chief Financial Officer Mr. George Achniotis. As a reminder, this conference call is also being webcast. To access the webcast, please go to the investor section of the Navios Holdings website, www.navios.com.
Before I review the structure of this morning’s call, I’d like to read the Safe Harbor statements. This conference could contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 about Navios. Forward-looking statements are statements that are not historical facts.
Such forward-looking statements are based upon the current beliefs and expectations of Navios Holdings’ management and are subject to risks and uncertainties which could cause actual results to differ from forward-looking statements. Such risks are more fully discussed in Navios Holdings’ filings with the Securities and Exchange Commission. The information set forth in this conference call should be understood in light of such risks. Navios Holdings does not assume any obligations to updates the information contained in this call. Thank you.
The agenda for today’s call was as follows. First, Ms. Frangou will offer opening remarks. Next Mr. Petrone will provide an operational update and an industry overview. Mr. Petrone’s will go through an overview including recent financials for Navios South American Logistics, then Mr. Achniotis will review Navios Holdings’ financial results. Lastly we’ll open the call to take your questions.
I’d now like to turn the call over to Navios Holding’s Chairman and CEO, Ms. Angeliki Frangou. Angeliki?
Thank you, Laura, and good morning to all of you who join us on today’s call. We are pleased to report our results for 2011 (inaudible) we are in a good fourth quarter. We are pleased with our performance in the fiscal market and focus during this year has been to efficiently modernization of our global fleet and maintaining good relationship with our commercial partner. We have also been focused on maintaining a solid balance sheet (inaudible) compliment this impairment. We’ll declare a $0.06 dividend for the fourth quarter of 2011 to stockholders of record on March 22, 2012.
Slide two show the current life of the valid Navios Holdings (inaudible) transformation with an advance fleet within Navios Holdings and all of the ratings attributing. This whole continues to be valid (inaudible) of its part. As you can see the value of Navios impacting the two publicly issued subsidiaries is $3.23 per share. The market values remain in the business is at beyond since in total. Navios core dry bulk fleet consist of 45 vessels in the water. This fleet has long-term charters with creditworthy counterparties that are all insured by AA+ European governmental entity. Our insurance coverage is unique and should continue to provide great comfort to all our stakeholders as it has done also historically.
The value of Navios Logistics is also growing. We have a superb management team, addressing the market opportunity and together we have transformed Navios Logistics into a key provider of service in the Hidrovia region of South America. Ioannis Karyotis will address Navios Logistics results in further detail later.
Slide 3, shows our strong competitive positioning. We remain in a difficult market where there by great lowest point in the past 25 years. However, we have won a to suggest (inaudible) difficult market, much of this work ;(inaudible) turning to the balance sheet. We believe that this continues to be very strong, as also in the Navios Maritime business. We’ve updated to the main delivery of the liabilities on our balance sheet, as a result in January of 2011, we refinanced our existing bonds with $850 million of (inaudible) debt. In doing so, we’ve expanded the maturity of this debt until 2019. This eliminates any refinancing risk until our next business we did in 2017 on about five years from today.
We have also been careful about managing our funding commitment for doing a building. Not only we have, we demonstrate that corresponding environment but we will also receive a cash inflow of $1.6 million upon a delivery over (inaudible) to market. We acquired these (inaudible) plan, full delivery in the first and second quarter of 2012. The total purchase price is almost $71 million. The vessels have been chartered out for two years, one at $12,825 per day, and other for $12,716 per day. Aggregate EBITDA is expected to be almost $6 million. This reduction was (inaudible) long-term finance in the $46 million (inaudible) bond for a ten year period, amortization scheduling in favorable margin.
In close attention to our debt maturities and CapEx funding requirements placed us in an advantageous position compared with our competitors. This competitor now find themselves in a position of having that a negative maturities EBITDA in the financing institutions significant not expanding their dollar loan to perform and capital market are open only selectively.
Looking forward in 2012, we have already covered 77% of our fleet base. As you can see from the left in slide three, which will be nothing more as (inaudible) and we still have 3,529 open days for 2012 using market prices we generate (inaudible) for our company. If we use $12,000 for the remaining open days we will generate a total of about $45 million profitability. I would also like to mention the type of vessels that we have open days in 2012. We have visually (inaudible) engaged for 2012 is only 13 days in the fourth quarter of this year. Those are very majority open days I think that under marks relative are the marks that begin to be particularly the current environment.