Navios Maritime Acquisition Corp.
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Navios Maritime Acquisition Corporation Reports Financial Results for the Fourth Quarter and the Year Ended December 31, 2016
  • Net income:
    • $62.9 million for 2016; $0.40 per share
    • $18.1 million for Q4 2016; $0.11 per share
  • EBITDA:
    • $194.6 million for 2016;
    • $49.9 million for Q4 2016;
    • $9.5 million book gain from the sale of Nave Universe and Nave Constellation
    • Quarterly dividend of $0.05 per share – consistently paid since 2010

MONACO , Feb. 09, 2017 (GLOBE NEWSWIRE) -- Navios Maritime Acquisition Corporation ("Navios Acquisition") (NYSE:NNA), an owner and operator of tanker vessels, reported its financial results today for the fourth quarter and the year ended December 31, 2016. 

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, "We are pleased to announce our results for the full year of 2016, where Navios Acquisition reported EBITDA of $194.6 million and net income of $62.9 million .  For the fourth quarter, Navios Acquisition reported EBITDA of $49.9 million and net income of $18.1 million .  We also declared a dividend of $0.05 per share for the fourth quarter, resulting in a dividend yield of 11.6%."

Angeliki Frangou continued, "Our chartering policy of seeking long-term charters provided us with superior returns at a time when favorable period charters were unavailable and spot rates were correcting. The strength of our chartering policy can be seen through our average 2016 charter rate for our fleet, which was about 11% higher than the market average rate. When combined with our leading cost management, Navios Acquisition has been able to pay a dividend for the last seven years, while having sufficient room to meet our various other corporate requirements "

HIGHLIGHTS — RECENT DEVELOPMENTS

Dividend of $0.05 per share of common stock

On February 3, 2017, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the fourth quarter of 2016 of $0.05 per share of common stock. The dividend is payable on March 14, 2017 to stockholders of record as of March 7, 2017 and provides a current annualized yield of 11.6%.

Sale of chemical tankers

On October 4, 2016, Navios Acquisition sold the Nave Universe, a 2013-built, chemical tanker of 45,513 dwt to an unaffiliated third party for a sale price of $37.3 million. On November 15, 2016 , Navios Acquisition sold the Nave Constellation, a 2013-built, chemical tanker of 45,281 dwt to an unaffiliated third party for a sale price of $37.3 million. Part of the net proceeds from the sale of the vessels totalling $32.7 million, were used to fully repay the outstanding amount under their credit facility. Navios Acquisition recognized a gain of $9.5 million from the sale of the two vessels.

Time Charter Coverage and commitments

Navios Acquisition currently owns 36 vessels, of which eight are VLCCs, 26 are product tankers and two are chemical tankers.

As of February 3, 2017 , Navios Acquisition had contracted 75.4% and 15.8% of its available days on a charter-out basis for 2017 and 2018, respectively, expecting to generate revenues of approximately $146.4 million and $21.3 million , respectively. The average contractual daily charter-out rate for the fleet is expected to be $18,629 and $17,202 for 2017 and 2018, respectively.  

During the year ended December 31, 2016 , Navios Acquisition recognized $7.6 million , under its profit sharing arrangements.

During the first quarter of 2017, Navios Maritime Midstream Partners L.P. ("Navios Midstream"), entered into new charter contracts for the Nave Celeste, the Shinyo Ocean and the Shinyo Kannika with third parties, which provide for index linked charter rates or pool earnings. Navios Acquisition has agreed to provide backstop commitments for a two-year period at a net rate of $35,000 per day for the Nave Celeste, $38,400 per day for the Shinyo Ocean and $38,025 per day for the Shinyo Kannika.

Credit facilities

In October 2016 , the Company repaid $15.6 million in cash being the balloon installment of $16.0 million under a tranche that financed one of its chemical tankers, achieving a $0.4 million benefit on the nominal value.

In January 2017 , the Company fully repaid the outstanding tranche of $16.0 million being the balloon installment under one of its credit facilities that financed the other chemical tanker.

In February 2017 , the Company drew $26.7 million under a new credit facility with a commercial bank secured with its two chemical tankers. The facility is repayable in four equal consecutive quarterly installments of $0.7 million each, with a final balloon payment of the balance to be repaid on the last repayment date. The maturity date of the loan is in February 2018 . The loan bears interest at LIBOR plus 400 bps per annum.

 

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Acquisition has compiled its consolidated statement of income for the three months and the year ended December 31, 2016 and 2015. The quarterly information for 2016 and 2015 was derived from the unaudited condensed consolidated financial statements for the respective periods.  

(Expressed in thousands of U.S. dollars)   Three Month
Period ended
December 31, 
2016
(unaudited)
  Three Month
Period ended
December 31, 
2015
(unaudited)
    Year ended
December 31,
2016
(unaudited)
  Year ended
December 31,
2015

(unaudited)
 
Revenue   $ 67,262   $ 76,685     $ 290,245   $ 313,396  
EBITDA   $ 49,892   $ 52,634     $ 194,552   $ 220,770  
Net income   $ 18,107   $ 20,125     $ 62,878   $ 89,737  
Earnings per share (basic)   $ 0.11   $ 0.13     $ 0.40   $ 0.57  

EBITDA is a non-GAAP financial measure and should not be used in isolation or substitution for Navios Acquisition's results (see Exhibit II for reconciliation of EBITDA). 

Three month periods ended December 31, 2016 and 2015   

Revenue for the three month period ended December 31, 2016 decreased by $9 .4 million or 12.3% to $67.3 million , as compared to $76.7 million for the same period of 2015. The decrease was mainly attributable to a: (a) decrease in revenue by $3.4 million due to the sale of one MR2 product tanker in January 2016 and two chemical tankers in October and November 2016 ; and (b) decrease in profit sharing by approximately $6.0 million . The decrease was partially mitigated by the increase in revenue following the deliveries of two VLCCs in the fourth quarter of 2015. Available days of the fleet decreased to 3,343 days for the three month period ended December 31, 2016, as compared to 3,386 days for the three month period ended December 31, 2015. The TCE Rate decreased to $19,683 for the three month period ended December 31, 2016, from $22,291 for the three month period ended December 31, 2015.

EBITDA for the three month period ended December 31, 2016 decreased by approximately $2.7 million to $49.9 million from $52.6 million in the same period of 2015. The decrease in EBITDA was mainly due to a: (a) $9.4 million decrease in revenue; (b) $2.8 million decrease in equity in net earnings of affiliated companies; (c) $0.8 million increase in other expense; (d) $0.3 million increase in management fees mainly due to the deliveries of the vessels discussed above; and (e) $0.2 million increase in time charter expenses; partially mitigated by a (i) $9.5 million gain from sale of vessels; (ii) $1.1 million decrease in general and administrative expenses; and (iii) $0.3 million increase in other income.

Net income for the three month period ended December 31, 2016 , decreased by approximately $2.0 million to $18.1 million compared to $20.1 million , for the same period in 2015. The decrease was due to a: (i) $2.7 million decrease in EBITDA; (ii) $0.6 million increase in interest expense and finance cost; and (iii) $0.3 million increase in direct vessel expenses; partially mitigated by a $1.6 million increase in interest income.

Year ended December 31, 2016 and 2015

Revenue for the year ended December 31, 2016 decreased by $23.2 million or 7.4% to $290.2 million , as compared to $313.4 million for 2015. The decrease was mainly attributable to: (i) the decrease in revenue by $18.6 million due to the sale of two VLCCs in June 2015 , one MR2 product tanker in January 2016 and two chemical tankers in October and November 2016 ; and (ii) the decrease in profit sharing by $24.5 million . The decrease was partially mitigated by the increase in revenue following deliveries of four vessels during 2015. Available days of the fleet increased to 13,753 days for the year ended December 31, 2016, as compared to 13,743 days for the year ended December 31, 2015. The TCE Rate decreased to $20,742 for the year ended December 31, 2016, from $22,477 for the year ended December 31, 2015.

EBITDA for the year ended December 31, 2016 decreased by $26.2 million to $194.6 million from $220.8 million in the same period of 2015. The decrease in EBITDA was mainly due to a: (a) $23.2 million decrease in revenue; (b) $2.9 million decrease in equity in net earnings of affiliated companies; (c) $2.5 million increase in management fees mainly due to the deliveries of the vessels discussed above; (d) $1.5 million increase in general and administrative expenses; (e) $1.2 million increase in other expense; (f) $0.7 million increase in direct vessel expenses (excluding amortization of dry dock and special survey costs); and (g) $0.5 million increase in time charter expenses; partially mitigated by a: (i) $6.0 million increase in gain on sale of vessels; and (ii) $0.3 million increase in other income.

Net income for the year ended December 31, 2016 decreased by approximately $26.9 million to $62.9 million from $89.7 million for 2015. The decrease was due to: (i) a decrease of $26.2 million in EBITDA; (ii) an increase of $2.4 million in interest expense and finance cost; and (iii) an increase of $1.3 million in amortization of dry docking and special survey costs included in direct vessel expenses. The decrease was partially mitigated by an increase of $3.1 million in interest income.

Fleet Employment Profile   

The following table reflects certain key indicators of the performance of Navios Acquisition and its core fleet for the three month periods and the years ended December 31, 2016 and 2015.

    Three month period ended
December 31,
    Year ended
December 31,
 
    2016
(unaudited)
    2015
(unaudited)
    2016
(unaudited)
    2015
(unaudited)
 
FLEET DATA                                
Available days(1)     3,343       3,386       13,753       13,743  
Operating days(2)     3,328       3,382       13,716       13,707  
Fleet utilization(3)     99.5     99.9     99.7     99.7
Vessels operating at period end     36         39       36         39  
AVERAGE DAILY RESULTS                                
Time Charter Equivalent ("TCE") Rate per day(4)   $ 19,683     $ 22,291     $ 20,742     $ 22,477  

(1)  Available days: Available days for the fleet represent the total calendar days the vessels were in Navios Acquisition's possession for the relevant period after subtracting off-hire days associated with scheduled repairs, dry dockings 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: Operating days are 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: Fleet utilization is the percentage of time that Navios Acquisition's vessels were available for generating revenue, 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 and minimizing the amount of days that its vessels are off hire for reasons other than scheduled repairs, dry dockings or special surveys.

(4)  TCE Rate: Time Charter Equivalent Rate per day is defined as voyage and time charter revenues less voyage expenses during a period divided by the number of available days during the period. The TCE Rate per day is a standard shipping industry performance measure used primarily to present the actual daily earnings generated by vessels of various types of charter contracts for the number of available days of the fleet.

Conference Call, Webcast and Presentation Details:
As previously announced, Navios Acquisition will host a conference call today, Thursday, February 9, 2017 at 8:30 am ET, at which time Navios Acquisition's senior management will provide highlights and commentary on earnings results for the fourth quarter and the year ended December 31, 2016.

US Dial In: +1.877.480.3873

International Dial In: +1.404.665.9927

Conference ID: 5690 4709

The conference call replay will be available shortly after the live call and remain available for one week at the following numbers:

US Replay Dial In: +1.800.585.8367

International Replay Dial In: +1.404.537.3406

Conference ID: 5690 4709

The call will be simultaneously Webcast. The Webcast will be available on the Navios Acquisition website, www.navios-acquisition.com, under the "Investors" section. The Webcast will be archived and available at the same Web address for two weeks following the call.

A supplemental slide presentation will be available by 8:00 am ET on the day of the call.

About Navios Acquisition
Navios Acquisition (NYSE:NNA) is an owner and operator of tanker vessels focusing on the transportation of petroleum products (clean and dirty) and bulk liquid chemicals. 

For more information about Navios Acquisition, please visit our website: www.navios-acquisition.com

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 expectations, including with respect to Navios Acquisition's future dividends, 2017 cash flow generation and Navios Acquisition's growth strategy and measures to implement such strategy; including expected vessel acquisitions and entering into further time charters. Words such as "may," "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 revenue and time charters. These forward-looking statements are based on the information available to, and the expectations and assumptions deemed reasonable by, Navios Acquisition at the time these statements were made. Although Navios Acquisition 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 Acquisition. 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, the creditworthiness of our charterers and the ability of our contract counterparties to fulfill their obligations to us, tanker industry trends, including charter rates and vessel values and factors affecting vessel supply and demand, the aging of our vessels and resultant increases in operation and dry docking costs, the loss of any customer or charter or vessel, our ability to repay outstanding indebtedness, to obtain additional financing and to obtain replacement charters for our vessels, in each case, at commercially acceptable rates or at all, increases in costs and expenses, including but not limited to: crew wages, insurance, provisions, port expenses, lube oil, bunkers, repairs, maintenance and general and administrative expenses, the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, as well as standard regulations imposed by our charterers applicable to our business, potential liability from litigation and our vessel operations, including discharge of pollutants, general domestic and international political conditions, competitive factors in the market in which Navios Acquisition operates; risks associated with operations outside the United States; and other factors listed from time to time in the Navios Acquisition's filings with the Securities and Exchange Commission, including its Form 20Fs and Form 6Ks. Navios Acquisition 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 Acquisition's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Navios Acquisition makes no prediction or statement about the performance of its common stock.

EXHIBIT I

NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. dollars- except share data)
                 
    December 31,
2016
(unaudited)
    December 31,
2015
(unaudited)
 
ASSETS                
Current assets                
Cash and cash equivalents   $ 49,292     $ 54,805  
Restricted cash     7,366       6,840  
Accounts receivable, net     20,933       14,202  
Due from related parties, short term     25,047       17,837  
Prepaid expenses and other current assets     4,644       3,665  
     
Total current assets     107,282       97,349  
     
Vessels, net     1,306,923       1,441,635  
Goodwill     1,579       1,579  
Other long-term assets     900       1,920  
Deferred dry dock and special survey costs, net     10,172       10,326  
Investment in affiliates     196,695       204,808  
Due from related parties, long-term     80,068       16,474  
     
Total non-current assets     1,596,337       1,676,742  
     
Total assets   $ 1,703,619     $ 1,774,091  
     
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities                
Accounts payable   $ 4,855     $ 2,753  
Accrued expenses     11,047       9,802  
Deferred revenue     8,519       7,600  
Current portion of long-term debt, net of deferred finance costs     55,000       62,643  
     
Total current liabilities     79,421       82,798  
     
Long-term debt, net of current portion, premium and net of deferred finance costs     1,040,938       1,134,940  
Deferred gain on sale of assets     7,829       8,982  
     
Total non-current liabilities     1,048,767       1,143,922  
     
Total liabilities   $ 1,128,188     $ 1,226,720  
     
Commitments and contingencies            
Puttable common stock 250,000 and 650,000 shares issued and outstanding with $2,500 and $6,500 redemption amount as of December 31, 2016 and December 31, 2015, respectively     2,500       6,500  
Stockholders' equity                
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; 1,000 series C shares and 4,000 series A and C shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively            
Common stock, $0.0001 par value; 250,000,000 shares authorized; 150,582,990 and 149,782,990 issued and outstanding as of December 31, 2016 and December 31, 2015, respectively     15       15  
Additional paid-in capital     541,720       540,856  
Retained Earnings     31,196        
Total stockholders' equity     572,931       540,871  
Total liabilities and stockholders' equity   $ 1,703,619     $ 1,774,091  
                 


NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Expressed in thousands of U.S. dollars- except share and per share data)
 
                                 
    For the Three     For the
Three
    For the     For the  
    Months     Months     Year     Year  
    Ended     Ended     Ended     Ended  
    December 31,     December 31,     December 31,     December 31,  
    2016
(unaudited)
    2015
(unaudited)
    2016
(unaudited)
    2015
(unaudited)
 
Revenue   $ 67,262     $ 76,685     $ 290,245     $ 313,396  
Time charter and voyage expenses     (1,455 )     (1,211 )     (4,980 )     (4,492 )
Direct vessel expenses     (777 )     (509 )     (3,567 )     (1,532 )
Management fees (entirely through related party transactions)     (24,255 )     (23,909 )     (97,866 )     (95,336 )
General and administrative expenses     (4,265 )     (5,353 )     (17,057 )     (15,532 )
Depreciation and amortization     (14,220 )     (14,262 )     (57,617 )     (57,623 )
Interest income     2,178       621       4,767       1,683  
Interest expenses and finance cost     (18,966 )     (18,359 )     (75,987 )     (73,561 )
Gain on sale of vessels     9,467             11,749       5,771  
Equity in net earnings of affiliated companies     3,683       6,530       15,499       18,436  
Other income     364       30       377       41  
Other expense     (909 )     (138 )     (2,685 )     (1,514 )
                                 
Net income   $   18,107     $ 20,125     $ 62,878     $ 89,737  
                                 
         
Net income per share, basic   $ 0.11     $ 0.13     $ 0.40     $ 0.57  
                                 
         
Weighted average number of shares, basic     150,403,641       149,162,131       149,932,713       150,025,086  
                                 
         
Net income per share, diluted   $ 0.11     $ 0.13     $ 0.40     $ 0.56  
                                 
         
Weighted average number of shares, diluted     150,586,251       151,370,640       150,736,156       153,300,395  
                                 


NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)
 
    Year ended
December 31,
2016
(unaudited)
    Year ended
December 31,
2015
(unaudited)
 
Operating Activities                
Net income   $ 62,878     $ 89,737  
Adjustments to reconcile net income to net cash provided by operating activities:                
Depreciation and amortization     57,617       57,623  
Amortization and write-off of deferred finance fees and bond premium     3,656       3,495  
Gain on debt repayment     (350 )      
Amortization of dry dock and special survey costs     2,837       1,532  
Stock based compensation     864       2,362  
Gain on sale of vessels     (11,749 )     (5,771 )
Equity in earnings of affiliates, net of dividends received     (1,438 )     (3,821 )
Changes in operating assets and liabilities:                
(Increase)/ decrease in prepaid expenses and other current assets     (479 )     5,067  
(Increase)/ decrease in accounts receivable     (6,731 )     4,367  
Increase in due from related parties short-term     (7,210 )      
Decrease/ (increase) in restricted cash     224       (41 )
Decrease/ (increase) in other long term assets     1,020       (1,230 )
Increase in accounts payable     2,102       1,246  
Increase/ (decrease) in accrued expenses     1,245       (293 )
Payments for dry dock and special survey costs     (3,828 )     (6,598 )
Decrease in due to related parties           (17,763 )
Increase in due from related parties long-term     (7,638 )     (16,476 )
(Decrease)/ increase in deferred revenue     (75 )     6,200  
       
Net cash provided by operating activities   $ 92,945     $ 119,636  
       
Investing Activities                
Acquisition of vessels           (163,791 )
Net cash proceeds from sale of vessels     89,988       71,224  
Investment in affiliates     (89 )     (7,201 )
Loans receivable from affiliates     (4,275 )     (7,327 )
Loan receivable from affiliate, net of issuance fee and costs     (49,342 )      
Dividends received from affiliates     7,223       2,585  
       
Net cash provided by/ (used in) investing activities   $ 43,505     $ (104,510
       
Financing Activities                
Loan proceeds, net of deferred finance costs and net of premium           192,930  
Loan repayments     (105,531 )     (140,861 )
Dividend paid     (31,682 )     (40,084 )
Increase in restricted cash     (750 )     (130 )
Payment to related party           (11,265 )
Redemption of Convertible shares and puttable common stock     (4,000 )     (5,500 )
Acquisition of treasury stock           (9,904 )
       
Net cash used in financing activities   $ (141,963 )   $ (14,814
       
Net (decrease)/ increase in cash and cash equivalents     (5,513 )     312  
Cash and cash equivalents, beginning of year     54,805       54,493  
       
Cash and cash equivalents, end of year   $ 49,292     $ 54,805  
                 

EXHIBIT II

Reconciliation of EBITDA to Net Cash from Operating Activities
                           
    Three
Month
    Three
Month
               
    Period     Period     Year     Year  
    Ended     Ended     Ended     Ended  
    December 31,
2016
(unaudited)
    December 31,
2015
(unaudited)
    December 31,
2016
(unaudited)
    December 31,
2015
(unaudited)
 
Expressed in thousands of U.S. dollars                                
Net cash provided by operating activities  

$
2,604     $ 28,148     $ 92,945     $ 119,636  
Net increase/ (decrease) in operating assets     10,543       (3,678 )     24,642       14,911  
Net decrease/ (increase) in operating liabilities     10,797       9,381       (3,272 )     10,610  
Net interest cost     16,788       17,738       71,220       71,878  
Amortization and write-off of deferred finance fees and bond premium     (968 )     (790 )     (3,656 )     (3,495 )
Gain on debt repayment     350             350        
Earnings in affiliates, net of dividends received     380       2,208       1,438       3,821  
Stock based compensation     (69 )     (373 )     (864 )     (2,362 )
Gain on sale of vessels     9,467             11,749       5,771  
                                 
EBITDA   $ 49,892     $ 52,634     $ 194,552     $ 220,770  
                                 


    Three Month 
Period 
Ended 
December 31, 
2016 
(unaudited)
    Three Month
Period
Ended
December 31,
2015
(unaudited)
    Year
Ended
December 31,
2016
(unaudited)
    Year
Ended
December 31,
2015
(unaudited)
 
Net cash provided by operating activities   $ 2,604   $ 28,148     $ 92,945     $ 119,636  
Net cash provided by/ (used in) investing activities   $ 73,671   $ (134,110 )   $ 43,505     $ (104,510 )
Net cash (used in)/ provided by financing activities   $ (70,219 ) $ 85,039     $ (141,963 )   $ (14,814 )
                               

  
Disclosure of Non-GAAP Financial Measures

EBITDA

EBITDA is a non-U.S. GAAP financial measure and should not be used in isolation or as substitution for Navios Acquisition's results calculated in accordance with U.S. GAAP.

EBITDA represents net income before interest and finance cost, before depreciation and amortization and before income taxes. We use EBITDA as a liquidity measure and reconcile EBITDA to net cash provided by/ (used in) operating activities, the most comparable U.S. GAAP liquidity measure. EBITDA in this document is calculated as follows: net cash provided by/(used in) operating activities adding back, when applicable and as the case may be, the effect of: (i) net increase/(decrease) in operating assets; (ii) net (increase)/decrease in operating liabilities; (iii) net interest cost; (iv) amortization and write-off of deferred finance fees and bond premium; (v) provision for losses on accounts receivable; (vi) equity in net earnings of affiliated companies, net of dividends received; (vii) payments for dry dock and special survey costs; (viii) gain/(loss) on sale of assets/subsidiaries; (ix) stock based compensation; (x) gain/ (loss) on debt repayments; and (xi) impairment charges. Navios Acquisition believes that EBITDA is the basis upon which liquidity can be assessed and presents useful information to investors regarding Navios Acquisition's ability to service and/or incur indebtedness, pay capital expenditures, meet working capital requirements and pay dividends. Navios Acquisition also believes that EBITDA is used: (i) by potential lenders to evaluate potential transactions; (ii) to evaluate and price potential acquisition candidates; and (iii) by securities analysts, investors and other interested parties in the evaluation of companies in our industry.

EBITDA has limitations as an analytical tool, and should not be considered in isolation or as a substitute for the analysis of Navios Acquisition's results as reported under U.S. 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. 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 Acquisition's performance. Furthermore, our calculation of EBITDA may not be comparable to that reported by other companies due to differences in methods of calculation.

EXHIBIT III

 

             
Vessels   Type   Year Built/Delivery
Date
  DWT
Owned Vessels            
Nave Polaris   Chemical Tanker   2011   25,145
Nave Cosmos   Chemical Tanker   2010   25,130
Nave Velocity   MR2 Product Tanker   2015   49,999
Nave Sextans    MR2 Product Tanker   2015   49,999
Nave Pyxis   MR2 Product Tanker   2014   49,998
Nave Luminosity   MR2 Product Tanker   2014   49,999
Nave Jupiter   MR2 Product Tanker   2014   49,999
Bougainville   MR2 Product Tanker   2013   50,626
Nave Alderamin   MR2 Product Tanker   2013   49,998
Nave Bellatrix   MR2 Product Tanker   2013   49,999
Nave Capella   MR2 Product Tanker   2013   49,995
Nave Orion   MR2 Product Tanker   2013   49,999
Nave Titan   MR2 Product Tanker   2013   49,999
Nave Aquila   MR2 Product Tanker   2012   49,991
Nave Atria   MR2 Product Tanker   2012   49,992
Nave Orbit   MR2 Product Tanker   2009   50,470
Nave Equator   MR2 Product Tanker   2009   50,542
Nave Equinox   MR2 Product Tanker   2007   50,922
Nave Pulsar   MR2 Product Tanker   2007   50,922
Nave Dorado   MR2 Product Tanker   2005   47,999
Nave Atropos   LR1 Product Tanker   2013   74,695
Nave Rigel   LR1 Product Tanker   2013   74,673
Nave Cassiopeia   LR1 Product Tanker   2012   74,711
Nave Cetus   LR1 Product Tanker   2012   74,581
Nave Estella   LR1 Product Tanker   2012   75,000
Nave Andromeda   LR1 Product Tanker   2011   75,000
Nave Ariadne   LR1 Product Tanker   2007   74,671
Nave Cielo   LR1 Product Tanker   2007   74,671
Nave Buena Suerte   VLCC   2011   297,491
Nave Quasar    VLCC   2010   297,376
Nave Synergy   VLCC   2010   299,973
Nave Galactic   VLCC   2009   297,168
Nave Spherical   VLCC   2009   297,188
Nave Photon   VLCC   2008   297,395
Nave Neutrino   VLCC   2003   298,287
Nave Electron   VLCC   2002   305,178
             
Public & Investor Relations Contact: Navios Maritime Acquisition Corporation +1.212.906.8644 info@navios-acquisition.com 

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