Navios Maritime Acquisition Corp.
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Navios Maritime Acquisition Corporation Reports Financial Results for the Third Quarter and Nine Months Ended September 30, 2017
  • Revenue
    •  
    $54.0 million for Q3 2017
    •  
    $177.0 million for the nine months 2017
  • Net cash from operating activities
    •  
    $22.5 million for Q3 2017
    •  
    $55.6 million for the nine months 2017
  • Adjusted EBITDA
    •  
    $23.3 million for Q3 2017
    •  
    $87.8 million for the nine months 2017
  • $55.1 million expected cash inflow in Q4 2017
    •  
    Early repayment of loan to Navios Maritime Holdings Inc. 
  • Quarterly dividend of $0.05 per share – consistently paid since 2010

MONACO, Nov. 02, 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 third quarter and the nine month period ended September 30, 2017.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “We are pleased with our results for the third quarter of 2017, where we reported revenue of $54.0 million and EBITDA of $23.3 million. We also declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of about 16.0%.”

Angeliki Frangou continued, “The recent volatility in the price of oil and continued uncertainty in the outlook has adversely affected transportation. However, our long-term chartering strategy insulates us somewhat from this volatility.”

HIGHLIGHTS — RECENT DEVELOPMENTS

Cash inflow of $55.1 million expected in the fourth quarter of 2017 from early repayment of loan to Navios Maritime Holdings Inc. (“Navios Holdings”)

In October 2017, Navios Holdings notified Navios Acquisition of its intention to fully prepay the loan facility entered into on September 19, 2016 with a payment of $55.1 million in the fourth quarter of 2017. The prepayment amount will consist of the $50.0 million drawn under the loan facility entered into with Navios Holdings and $5.1 million of accrued interest.

Dividend of $0.05 per share of common stock

On October 25, 2017, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the third quarter of 2017 of $0.05 per share of common stock. The dividend is payable on December 12, 2017 to stockholders of record as of December 6, 2017. The declaration and payment of any further dividends remain subject to the discretion of the Board of Directors and will depend on, among other things, Navios Acquisition’s cash requirements as measured by market opportunities and restrictions under its credit agreements and other debt obligations and such other factors as the Board of Directors may deem advisable.

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 November 2, 2017, Navios Acquisition had contracted 98.8% of its available days on a charter-out basis for 2017, which is expected to generate revenues of approximately $208.2 million. The average contractual net daily charter-out rate for the fleet is expected to be $17,312.

FINANCIAL HIGHLIGHTS 

For the following results and the selected financial data presented herein, Navios Acquisition has compiled its consolidated statements of operations for the three and nine months ended September 30, 2017 and 2016. The quarterly information for 2017 and 2016 was derived from the unaudited condensed consolidated financial statements for the respective periods.  

(Expressed in thousands of U.S. dollars)   Three Month
Period ended
September 30, 
2017
(unaudited)

Three Month
Period ended
September 30, 
2016
(unaudited)

  Nine Month
Period ended
September 30, 
2017
(unaudited)

Nine Month
Period ended
September 30,
2016
(unaudited)

Revenue   $ 54,021   $ 68,069     $ 176,961   $ 222,983  
Net (loss)/income   $ (8,105 ) $ 8,817     $ (66,907 ) $ 44,771  
Adjusted net (loss)/ income   $ (8,105 ) $ 9,084 (2)   $ (7,107 )(1) $ 43,498 (2)
Net cash provided by operating
activities
  $ 22,509   $ 40,104     $ 55,648   $ 90,341  
EBITDA   $ 23,303   $ 41,706     $ 28,660   $ 144,660  
Adjusted EBITDA   $ 23,303   $ 41,973 (2)   $ 87, 764 (1) $ 143,173 (2)
(Loss)/income per share (basic)   $ (0.05 ) $ 0.06     $ (0.42 ) $ 0.28  
Adjusted (loss)/income per share (basic)   $ (0.05 ) $ 0.06 (2)   $ (0.04 )(1) $ 0.28 (2)

(1)  Adjusted EBITDA, Adjusted net loss and Adjusted loss per share (basic) for the nine month period ended September 30, 2017 in this document exclude $59.1 million of non-cash impairment loss on equity investment in Navios Maritime Midstream Partners L.P. (“Navios Midstream”).

In addition, Adjusted net loss and Adjusted net loss per share (basic) for the nine month period September 30, 2017 further exclude a $0.7 million write-off of deferred finance cost.

(2)  Adjusted EBITDA, Adjusted net income and Adjusted income per share (basic) for the three month period ended September 30, 2016 in this document exclude non-cash stock-based compensation of $0.3 million.

Adjusted EBITDA, Adjusted net income and Adjusted income per share (basic) for the nine month period ended September 30, 2016 in this document exclude gain on sale of vessel of $2.3 million and non-cash stock-based compensation of $0.8 million. Adjusted net income and Adjusted income per share (basic) further exclude a $0.2 million write-off of deferred finance cost. 

EBITDA, Adjusted EBITDA, Adjusted net (loss)/income and Adjusted (loss)/income per share (basic) are 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 and Adjusted EBITDA). 

Three month periods ended September 30, 2017 and 2016

Revenue for the three month period ended September 30, 2017 decreased by $14.0 million, or 20.6%, to $54.0 million, as compared to $68.1 million for the same period of 2016. The decrease was mainly attributable to a: (i) decrease in the market rates during the third quarter ended September 30, 2017, as compared to the same period in 2016; and (ii) decrease in revenue by $3.1 million due to the sale of two chemical tankers in the fourth quarter of 2016. Available days of the fleet decreased to 3,215 days for the three month period ended September 30, 2017, as compared to 3,496 days for the three month period ended September 30, 2016. The time charter equivalent rate, or TCE Rate, decreased to $16,486 for the three month period ended September 30, 2017, from $19,159 for the three month period ended September 30, 2016.

Net loss for the three month period ended September 30, 2017 decreased by $16.9 million to $8.1 million net loss as compared to $8.8 million net income for the same period of 2016. The decrease was due to a: (a) $18.7 million decrease in Adjusted EBITDA; and (b) $0.3 million increase in direct vessel expenses; partially mitigated by a: (i) $1.7 million increase in interest income; (ii) $0.3 million share based compensation expense incurred in the third quarter ended September 30, 2016; and (iii) $0.1 million decrease in interest expense and finance cost.

Adjusted EBITDA for the three month period ended September 30, 2017 decreased by approximately $18.7 million to $23.3 million as compared to $42.0 million for the same period of 2016. The decrease in Adjusted EBITDA was mainly due to a: (a) $14.0 million decrease in revenue, as described above; (b) $5.9 million increase in time charter expenses mainly due to the accrued backstop commitment to Navios Midstream; and (c) $0.6 million increase in other expense, net, partially mitigated by a: (i) $1.2 million decrease in management fees, mainly due to the sale of two chemical tankers in the fourth quarter of 2016, as discussed above; (ii) $0.6 million increase in equity in net earnings of affiliated companies; and (iii) $0.1 million decrease in general and administrative expenses (excluding the share-based compensation expense).

Nine month periods ended September 30, 2017 and 2016

Revenue for the nine month period ended September 30, 2017 decreased by $46.0 million, or 20.6%, to $177.0 million, as compared to $223.0 million for the same period of 2016. The decrease was mainly attributable to a: (i) decrease in the market rates during the nine month period ended September 30, 2017, as compared to the same period in 2016; and (ii) decrease in revenue by $10.1 million due to the sale of one MR2 product tanker in January 2016 and two chemical tankers in the fourth quarter of 2016. Available days of the fleet decreased to 9,678 days for the nine month period ended September 30, 2017, as compared to 10,410 days for the nine month period ended September 30, 2016. The TCE Rate decreased to $17,814 for the nine month period ended September 30, 2017, from $21,082 for the nine month period ended September 30, 2016.

On June 30, 2017, the Company recognized a $59.1 million non-cash impairment loss on its equity investment in Navios Midstream.

Net loss for the nine month period ended September 30, 2017 was adjusted to exclude the $59.1 million impairment loss, described above, and $0.7 million write-off of deferred finance cost. Adjusted net loss for the nine month period ended September 30, 2017 decreased by $50.6 million to $7.1 million net loss as compared to $43.5 million net income for the same period of 2016. The decrease was due to a: (a) $55.4 million decrease in Adjusted EBITDA; (b) $0.8 million increase in direct vessel expenses; partially mitigated by a: (i) $4.9 million increase in interest income; and (ii) $0.7 million decrease in depreciation and amortization.

Adjusted EBITDA for the nine month period ended September 30, 2017 excludes the $59.1 million impairment loss, as discussed above, and decreased by $55.4 million to $87.8 million as compared to $143.2 million for the same period of 2016. The decrease in Adjusted EBITDA was mainly due to a: (a) $46.0 million decrease in revenue, as described above; (b) $12.3 million increase in time charter expenses mainly due to the $11.2 million accrued backstop commitment to Navios Midstream; and (c) $3.9 million decrease in equity/ (loss) in net earnings of affiliated companies, partially mitigated by a: (i) $2.7 million decrease in general and administrative expenses (excluding the share-based compensation expense); (ii) $2.6 million decrease in management fees, mainly due to the sale of one MR2 product tanker in January 2016 and two chemical tankers in the fourth quarter of 2016; (iii) $0.8 million decrease in other expense, net; and (iv) $0.7 million decrease in direct vessel expenses (excluding amortization of dry dock and special survey costs).

Fleet Employment Profile 

The following table reflects certain key indicators of the performance of Navios Acquisition and its core fleet for the three and nine month periods ended September 30, 2017 and 2016.

                                 
    Three month period ended
September 30,
    Nine month period ended
September 30,
 
    2017
(unaudited)
    2016
(unaudited)
    2017
(unaudited)
    2016
(unaudited)
 
FLEET DATA                                
Available days(1)     3,215       3,496       9,678       10,410  
Operating days(2)     3,205       3,489       9,660       10,388  
Fleet utilization(3)     99.7 %     99.8 %     99.8 %     99.8 %
Vessels operating at period end     36       38       36       38  
AVERAGE DAILY RESULTS                                
Time charter equivalent rate per day(4)   $ 16,486     $ 19,159     $ 17,814     $ 21,082  

Navios Acquisition believes that the important measures for analyzing trends in its results of operations consist of the following:

(1 ) Available days: Available days for the fleet are total calendar days the vessels were in Navios Acquisition’s possession for the relevant period after subtracting off-hire days associated with major repairs, drydocking 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, November 2, 2017 at 8:30 am ET, at which time Navios Acquisition's senior management will provide highlights and commentary on earnings results for the third quarter and the nine month period ended September 30, 2017.

US Dial In: +1.877.480.3873

International Dial In: +1.404.665.9927

Conference ID: 9253 3535

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: 9253 3535

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 U.S. Securities and Exchange Commission, including its annual and interim reports filed on Form 20-F and Form 6-K. 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.

Public & Investor Relations Contact:
Navios Maritime Acquisition Corporation
+1.212.906.8644
info@navios-acquisition.com


EXHIBIT I
NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Expressed in thousands of U.S. dollars- except share data)
 
        September 30,
2017
(unaudited)
    December 31,
2016
(unaudited)
 
ASSETS                    
Current assets                    
Cash and cash equivalents       $ 58,211     $ 49,292  
Restricted cash         4,166       7,366  
Accounts receivable, net         12,519       20,933  
Due from related parties, short-term         15,427       25,047  
Prepaid expenses and other current assets         4,444       4,644  
Total current assets         94,767       107,282  
Vessels, net         1,264,263       1,306,923  
Goodwill         1,579       1,579  
Other long-term assets         900       900  
Deferred dry dock and special survey costs, net         17,720       10,172  
Investment in affiliates         126,789       196,695  
Due from related parties, long-term         107,633       80,068  
Total non-current assets         1,518,884       1,596,337  
Total assets       $ 1,613,651     $ 1,703,619  
LIABILITIES AND STOCKHOLDERS’ EQUITY                    
Current liabilities                    
Accounts payable       $ 3,147     $ 4,855  
Accrued expenses         25,144       11,047  
Due to related parties, short-term         12,365        
Deferred revenue         8,553       8,519  
Current portion of long-term debt, net of deferred finance costs         53,994       55,000  
Total current liabilities         103,203       79,421  
Long-term debt, net of current portion, premium and net of deferred finance costs         1,020,915       1,040,938  
Deferred gain on sale of assets         6,973       7,829  
Total non-current liabilities         1,027,888       1,048,767  
Total liabilities       $ 1,131,091     $ 1,128,188  
Commitments and contingencies         —        —   
Puttable common stock 25,000 and 250,000 shares issued and outstanding with $250 and $2,500 redemption amount as of September 30, 2017 and December 31, 2016, respectively         250       2,500  
Stockholders’ equity                    
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; 1,000 series C shares issued and outstanding as of September 30, 2017 and December 31, 2016.                
Common stock, $0.0001 par value; 250,000,000 shares authorized; 150,357,990 and 150,582,990 issued and outstanding as of September 30, 2017 and December 31, 2016, respectively         15       15  
Additional paid-in capital         525,914       541,720  
(Accumulated deficit)/ Retained earnings         (43,619 )     31,196  
Total stockholders’ equity         482,310       572,931  
Total liabilities and stockholders’ equity       $ 1,613,651     $ 1,703,619  


NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Expressed in thousands of U.S. dollars- except share and per share data)
 
        For the Three
  For the Three
  For the Nine
  For the Nine
        Months
  Months
  Months
  Months
        Ended
  Ended
  Ended
  Ended
        September 30, 2017
  September 30, 2016
  September 30, 2017
  September 30, 2016
        (unaudited)
  (unaudited)
  (unaudited)
  (unaudited)
Revenue       $ 54,021     $ 68,069     $ 176,961     $ 222,983  
Time charter and voyage expenses         (7,030 )     (1,087 )     (15,793 )     (3,525 )
Direct vessel expenses         (1,053 )     (741 )     (2,880 )     (2,790 )
Management fees (entirely through related party transactions)         (23,939 )     (25,107 )     (71,035 )     (73,611 )
General and administrative expenses         (2,837 )     (3,282 )     (9,293 )     (12,792 )
Depreciation and amortization         (14,220 )     (14,220 )     (42,660 )     (43,397 )
Gain on sale of vessel                           2,282  
Interest income         2,755       1,055       7,495       2,589  
Interest expense and finance cost         (18,890 )     (18,983 )     (57,522 )     (57,021 )
Equity/ (loss) in net earnings of affiliated companies         3,752       3,194       (51,208 )     11,816  
Other expense, net         (664 )     (81 )     (972 )     (1,763 )
                                     
Net (loss)/ income       $ (8,105 )   $ 8,817     $ (66,907 )   $ 44,771  
                                     
Net (loss)/ income per share, basic and diluted       $ (0.05 )   $ 0.06     $ (0.42 )   $ 0.28  
Weighted average number of shares, basic         150,379,186       149,984,072       150,438,485       149,774,591  
Weighted average number of shares, diluted         150,379,186       150,684,077       150,438,485       150,786,684  


NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)
 
        For the Nine Months
Ended September 30, 2017
(unaudited)
  For the Nine Months
Ended September 30, 2016
(unaudited)
Operating Activities                    
Net (loss)/ income       $ (66,907 )   $ 44,771  
Adjustments to reconcile net (loss)/ income to net cash provided by operating activities:                    
Depreciation and amortization         42,660       43,397  
Amortization and write-off of deferred finance fees and bond premium         3,322       2,688  
Amortization of dry dock and special survey costs         2,880       2,060  
Stock based compensation               795  
Gain on sale of vessel               (2,282 )
Equity/ (loss) in net earnings of affiliates, net of dividends received         57,941       (1,058 )
Changes in operating assets and liabilities:                    
Increase in prepaid expenses and other current assets         (300 )     (526 )
Decrease/ (increase) in accounts receivable         8,414       (1,462 )
Decrease/ (increase) in due from related parties, short-term         9,620       (2,770 )
Increase in restricted cash         (10 )     (97 )
Increase in other long term assets               (490 )
Increase in due from related parties, long-term         (16,348 )     (6,404 )
(Decrease)/ increase in accounts payable         (1,708 )     1,589  
Increase in accrued expenses         14,097       13,928  
Payments for dry dock and special survey costs         (10,427 )     (2,350 )
Increase in due to related parties, short-term         12,365        
Increase/ (decrease) in deferred revenue         49       (1,448 )
                     
Net cash provided by operating activities       $ 55,648     $ 90,341  
                     
Investing Activities                    
Loans receivable from affiliates         (9,061 )     (4,275 )
Dividends received from affiliates         9,242       5,205  
Investment in affiliates         (84 )     (75 )
Net cash proceeds from sale of vessel               18,449  
Loan receivable from affiliate, net of issuance fee and costs               (49,470 )
                     
Net cash provided by / (used in) investing activities       $ 97     $ (30,166
                     
Financing Activities                    
Loan proceeds, net of deferred finance costs         49,764        
Loan repayments         (73,836 )     (46,100 )
Dividend paid         (23,714 )     (23,769 )
Decrease in restricted cash         3,210       1,125  
Redemption of convertible shares and puttable common stock         (2,250 )     (3,000 )
                     
Net cash used in financing activities       $ (46,826 )   $ (71,744
                     
Net increase/ (decrease) in cash and cash equivalents         8,919       (11,569
Cash and cash equivalents, beginning of period         49,292       54,805  
                     
Cash and cash equivalents, end of period       $ 58,211     $ 43,236  
                     


EXHIBIT II
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities
 
    Three Month
Period
Ended
September 30,
2017
(unaudited)
    Three Month
Period
Ended
September 30,
2016
(unaudited)
    Nine Month
Period
Ended
September 30,
2017
(unaudited)
    Nine Month
Period
Ended
September 30,
2016
(unaudited)
 
Expressed in thousands of U.S. dollars                                
Net cash provided by operating activities   $ 22,509     $ 40,104     $ 55,648     $ 90,341  
Net (decrease)/ increase in operating assets     (1,771 )     (2,832 )     (1,376 )     11,749  
Net increase in operating liabilities     (18,798 )     (12,654 )     (24,803 )     (14,069 )
Net interest cost     16,135       17,928       50,027       54,432  
Amortization and write-off of deferred finance costs and bond premium     (743 )     (824 )     (3,322 )     (2,688 )
Equity/ (loss) in net earnings of affiliates (including OTTI loss), net of dividends received     472       225       (57,941 )     1,058  
Payments for dry dock and special survey costs     5,499       26       10,427       2,350  
Gain on sale of vessel                       2,282  
Stock based compensation           (267 )           (795 )
                                 
EBITDA   $   23,303     $ 41,706     $ 28,660     $ 144,660  
Other-than-temporary-impairment loss on equity investment                 59,104        
Gain on sale of vessel                       (2,282 )
Stock based compensation           267             795  
Adjusted EBITDA   $   23,303     $ 41,973     $ 87,764     $ 143,173  
                                 
                                 
         
    Three Month
Period
Ended
September 30,
2017
(unaudited)
    Three Month
Period
Ended
September 30,
2016
(unaudited)
    Nine Month
Period
Ended
September 30,
2017
(unaudited)
    Nine Month
Period
Ended
September 30,
2016
(unaudited)
 
Net cash provided by operating activities   $ 22,509     $ 40,104     $ 55,648     $ 90,341  
Net cash provided by/ (used in) investing activities   $ 2,045     $ (47,193 )   $ 97     $ (30,166 )
Net cash used in financing activities   $ (17,887 )   $ (19,211 )   $ (46,826 )   $ (71,744 )
                                 

Disclosure of Non-GAAP Financial Measures

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. generally accepted accounting principles (“U.S. GAAP”).

EBITDA represents net (loss)/income before interest and finance costs, before depreciation and amortization and before income taxes. Adjusted EBITDA in this document represents EBITDA excluding certain items, such as stock-based compensation, gain on sale of vessel and other- than- temporary- impairment loss on equity investment, as described under “Financial Highlights”. Adjusted net (loss)/ income and Adjusted (loss)/ income per share (basic) represent Net (loss)/ income and (loss)/ income per share (basic), excluding certain items as described under “Financial Highlights”. We use Adjusted EBITDA as liquidity measure and reconcile EBITDA and Adjusted 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 of deferred finance cost and other related expenses; (v) equity in net earnings of affiliated companies, net of dividends received; (vi) payments for dry dock and special survey costs; (vii) impairment charges; (viii) gain/ loss on sale of assets; and (ix) stock based compensation. Navios Acquisition believes that EBITDA and Adjusted EBITDA are each the basis upon which liquidity can be assessed and present 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 and Adjusted EBITDA are 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 and Adjusted EBITDA have 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 and Adjusted EBITDA do 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 and Adjusted EBITDA do not reflect any cash requirements for such capital expenditures. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as a principal indicator of Navios Acquisition’s performance. Furthermore, our calculation of EBITDA and Adjusted 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 DWT
Date
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

Navios Maritime Acquisition