Q3 2022 Navios Maritime Holdings Inc Earnings Call

Good day, everyone and welcome to the Navios Maritime Holdings Q3, 2022 earnings Conference call. At this time all participants are in a listen only mode. Please note. This call may be recorded and I'll be standing by should you need any assistance.

It is now my pleasure to turn the conference over to Michael Pearson. Please go ahead.

Good morning, and thank you for joining Navios Maritime Holdings third quarter 2022 earnings Conference call. We are pleased to host this call from the Kindergarten's goldmine sitting cooled payments Mrs. Daniella Guanabara, who will take you through the conference call details and Safe Harbor statements Daniela. Thank you.

Minder This conference call is being webcast.

Access the webcast. Please visit the investors section of Navios Maritime Holdings website at Www Dot Dot com.

Youll see the webcast link in the middle of the page and a copy of the presentation referenced in today's call will also be found there.

Now I'll review the Safe Harbor statement. This conference call could contain forward looking statements under the meaning of the private Securities Litigation Reform Act of 1095 about Navios Maritime Holdings.

Forward looking statements are statements that are not historical facts such forward looking statements are based upon the current beliefs and expectations.

Maritime Holdings' management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements.

Such risks are more fully discussed in Navios Maritime Holdings' filings with the Securities and Exchange Commission. The information set forth herein should be understood in light of such risks Navios Maritime holdings does not assume any obligation to update the information contained in this conference call.

We'll begin this morning's conference call with Navios Holdings, chairwoman and CEO Ms Angela shrinking Angelica.

Thank you Michael and good morning to all of you joining us on today's call I am pleased with our results for the third quarter of 2022.

We generated net income of $39 million.

Q3, 2022 months in turning point for <unk>.

Please turn to slide four and future results will be materially different as vishal.

Four $875 million, taking advantage of the strong dry bulk market. This sale generated 376.

$6 million in cash, which we mainly use to pay down on debt.

Deleveraging the company.

Given the change in the nature of the underlying business. We also offer disaster called it.

We see different in the form of a tender offer.

We used $9 2 million to repurchase 604343 cents all these innovation tour.

About $15 million and that eliminated and one 3 million annual dividend obligation after.

After the sale of Navios Holdings owns at 10, 3% ownership interest in Navios partners and diversified mining transportation company.

We also own 63, 8% ownership in the <unk> and now they're somehow make LNG.

And logistics and interest that actually provided in the <unk> region of South America.

We are focused on developing novel, South American logistics and have implemented a management succession plan.

Im pleased to report that Joseph.

And appointed as the CEO of Navios, South American logistics.

George and I have worked together for almost 20 years and I'm confident in his leadership.

George has worked closely with another South American logistics team for many years. So this was not where he has moved to <unk> on a full time basis. He will also shed on that.

CFO .

Accordingly.

<unk> continues as inactive vice chairman and we hope to benefit from his experience and wisdom for many years.

I would also like to mention a few other promotions you arent as casualties Navios South America.

No time CFO has been appointed as the Chief operating officer.

Thank you Fernando formerly a vice President of finance has been appointed as our CFO .

You will see that it had been changes throughout the ranks of management and George will discuss these integrated these days.

We believe that this is a large commercial opportunity in the region. While this may take some time to develop the global focus on food and energy security. Among other countries is having a positive impact on the development of logistics assets indicator region than it has been renewed in December .

Bobby.

Before mining assets.

Your own inpatient volumes are creating new business opportunities, we hope to take advantage of the development would that be.

I would like now to turn the call over to Mr. Georgia.

Who will go through the finances Jos.

Thank you again, please turn to slide five for a review of the Navios Holdings financial highlights for the third quarter and the first nine months of 2022.

I want to point out that the expense of this quarter were affected by the sale of the fleet to Navios partners.

The completion of RBC.

Of the dry bulk fleet has been reported as discontinued operations.

The sale of the fleet.

Did you mean mid game.

$102 million.

Going forward the consolidated results of the company, we mainly reflect that sense of notice of America logistics.

EBITDA for the quarter was about 150 million compared to $116 million in Q3 of 2021.

In addition to the gain from the sale of the fleet.

Of Q3, and 98 million other than temporary impairment of our investment in Navios partners.

Net income for Q3 was 39 million compared to about $60 million in Q3 of 'twenty one.

In addition to the items that affected Q3 EBITDA net income was also affected by fees for the prepayment of debt.

Moving to the nine month financial highlights.

EBITDA for the first nine months of 2022 was $323 million compared to 251 million in the same period of 'twenty one.

EBITDA was affected by the same items, so that affected the Q3 results.

Net income for the period was $79 million compared to $85 million in 'twenty one.

Turning to the items that affected Q3 EBITDA. The results were also affected by increase in prepayment charges for the refinancing of our debt in Q1.

Moving to slide six and our balance sheet highlights.

At September 30th two.

2022, the cash balance was about $91 million compared to about $138 million at the end of December to anyone.

I want to remind you that at the end of December to $84 million was restricted cash that was.

Deposited with the trustee of the ship mortgage notes in order to facilitate the repayment of the notes in January .

Following the sale of the fleet in Q3.

The repayment of the maturity of our obligations the consolidated balance sheet, mainly reflects the balance sheet of Microsoft Theyre, making logistics.

Please turn to slide seven for an overview of our main countries.

Navios logistics operates three port terminals, which provides about 90% of our EBITDA.

These are complemented by our barge fleet for river transportation and product tanker fleet for close on a couple of those things.

Turn to slide eight you already mentioned in the past month, we proceeded with changes to the board of directors and the management of the company and its.

This is our new CFO .

Fair Randall is the new CFO and Mariana Apollo is the new chief risk Officer.

And I have assumed the position of CEO .

We have also strengthened our commercial and business development team with the appointments of recounting the resource and Francis.

As new management, we're all very excited with the opportunity ahead of us.

Our strategy is to maximize the return of our existing assets provide innovative logistics solutions to our clients and capture new business opportunities.

We have unique infrastructure assets in the region.

We want to leverage to serve our existing clients and develop new business opportunities.

At this point I'll turn the call over to Gary described <unk> for an update on recent developments.

<unk>.

Thank you George please turn to slide nine.

<unk> focus on food security should benefit our gasoline exports from South America.

In the first nine months of 2022 grain exports through our posting order why we're 45% higher than the same period last year, mainly driven by higher Uruguayan exports of soybeans.

According to the USDA, the 2022 23, South American soybean crop should continue to strengthen.

In Q4, our grain terminal Paraguay and group production is expected to recover from a difficult 2021 'twenty two.

The outlook for a minute on transportation and consequent is positive.

We see revived interest in exploiting mineral assets in the <unk>.

Tom Zenk concept through the haemoglobin <unk> system.

We expect that that will increase production from the mines recently acquired from value driving more oxygen volume through our Birmingham.

Do I get a return on.

I don't know if producers battery and portable mining both user segments to export iron ore currently mainly into Europe . We believe that this increasingly interest will not only benefit our board and box business banking.

Also we create new opportunities for revenue growth.

In the last couple of years low watering the pylon and Paraguay levers may have engaged some difficult adversely affecting our box business in 2022 worker level improved compared to both 2020 and 2021 yet.

Below the historical average in addition, the boot barn lying in soybean crop in 2022 and reduced demand for dry cargo barge transportation.

The gap with those market conditions are improving in the nine months period, our fleet employment increased 15% compared to the same period last year and charter rate are gradually improving quoting the strong stock market internationally.

I would now like to turn the call over to Enrique for Roundup, Navios logistic CFO for the discussion of the financial results.

Thank you Jan please.

Please turn to page 10-Q, three 2022, adjusted EBITDA was $29 1 million, 25% higher compared to the same quarter last year.

<unk> segment, adjusted EBITDA grew 32% to $25 8 million, mainly driven by a 38% increase in the grain port throughput.

Related to higher roadway on exports of soybeans higher studies.

Portal following the annual inflation adjustment amended into our valet contract as well as increased iron ore throughput from the clients for the mining and lithium.

In the Lottery segment Q3, 2022, adjusted EBITDA decreased 73% to <unk> 5 million, mainly due to low demand on dry cargo.

In the Cabo does weakness Q3, 2022, adjusted EBITDA increased by $1 million to $2 9 million due to more operating days of the fleet as the market environment in Argentina has improved compared to last year. Following a recovery of the demand after at the end of the lockdown.

For Q3 2022, adjusted profit was $4 8 million compared to $4 3 million loss in the same period last year mainly.

Mainly due to improved segment performance and lower income tax on the Argentinian operations.

Turning to the financial results for the nine months period, ending September 32022 revenue increased 16% to 201 9 million adjusted EBITDA increased 24% to $85 3 million and adjusted profit increased by $13 4 million.

To $10 8 million compared to the same period last year.

Please turn to slide 11.

Navios logistics has no significant debt maturities until 2025.

Cash and tragically earnings at the end of the third quarter of 2022.

$52 8 million.

This concludes my presentation I would now.

Now to turn the call over to London to Keith for some final comments.

Pete.

Thank you Eddie.

Completes our formal presentation for the Q3 result, thank you very much.

Thank you ladies and gentlemen. This concludes today's event you may now disconnect.

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