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, 2017
  • Revenue: $50.3 million for Q4 2017; $227.3 million for 2017
  • $45.9 million net cash from operating activities for 2017
  • Adjusted EBITDA: $20.0 million for Q4 2017; $107.7 million for 2017
  • Returning capital to shareholders:
    • $25.0 million - stock repurchase program
    • Declared quarterly dividend of $0.02 per share

MONACO, Feb. 07, 2018 (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, 2017.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “We are pleased with the results for the fourth quarter and full year of 2017. For the fourth quarter, Navios Acquisition reported revenue of $50.3 million and Adjusted EBITDA of $20.0 million. For the full year of 2017, Navios Acquisition reported revenue of $227.3 million and Adjusted EBITDA of $107.7 million. We also declared a quarterly distribution of $0.02 per share for the fourth quarter. This dividend represents an annualized distribution of $0.08 per share and a yield of approximately 10% based on the current market price of NNA.”

Angeliki Frangou continued, “This dividend is accompanied by a new $25.0 million stock repurchase program. We believe this program is a particularly effective and tax efficient method for returning capital to shareholders at a time when Navios Acquisition’s shares are trading below the company’s net asset value as estimated by our analysts. As fellow shareholders, we are personally affected by these actions, and thus share our belief that by so reinstituting a stock repurchase program we are progressing the best long-term interests of shareholders.“

HIGHLIGHTS — RECENT DEVELOPMENTS

Stock Repurchase Authorization

The Board of Directors of Navios Acquisition has authorized a stock repurchase program for up to $25.0 million of Navios Acquisition's common stock, for two years. Stock repurchases will be made from time to time for cash in open market transactions at prevailing market prices or in privately negotiated transactions. The timing and amount of repurchases under the program will be determined by management based upon market conditions and other factors. Repurchases may be made pursuant to a program adopted under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. The program does not require any minimum repurchase or any specific number or amount of shares of common stock and may be suspended or reinstated at any time in Navios Acquisition's discretion and without notice. The Board of Directors will review the program periodically. Repurchases will be subject to restrictions under Navios Acquisition’s credit facilities and indenture.

Dividend of $0.02 per share of common stock

On January 26, 2018, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the fourth quarter of 2017 of $0.02 per share of common stock. The dividend is payable on March 27, 2018 to shareholders of record as of March 22, 2018. 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.

Refinancing Credit facility

Navios Acquisition is in advanced discussions for re-financing its credit facility of four product tankers, which matures in the third and fourth quarter of 2018 and the first quarter of 2019. The re- financing, under the form of a leasing structure, has a term of six years, a repayment profile of 12 years and bears interest at LIBOR plus 305 bps per annum. No assurances can be provided that Navios Acquisition will successfully refinance this credit facility.

Cash inflow of $55.1 million from early repayment of loan granted to Navios Maritime Holdings Inc. (“Navios Holdings”)

On November 3, 2017, Navios Holdings prepaid in full the outstanding amount under its secured facility of up to $70.0 million, with a payment of $55.1 million. The prepayment amount consisted of the $50.0 million drawn under the facility and $5.1 million of accrued interest.

Time charter coverage

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

Currently, Navios Acquisition had contracted 60.2% of its available days on a charter-out basis for 2018, which is expected to generate revenues of approximately $86.4 million for 2018. The average contractual net daily charter-out rate for the 46.3% of the available days that are contracted on base rate and /or on base rate with profit sharing is expected to be $14,184 for 2018.

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 month periods and years ended December 31, 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
December 31, 
2017
(unaudited)
   

 

Three Month
Period ended
December 31, 
2016
(unaudited)
     

 

 

Year ended
December 31,
2017
(unaudited)
   

 

 

Year ended
December 31,
2016
(unaudited)
 
Revenue   $ 50,327   $ 67,262     $ 227,288   $ 290,245    
Net (loss)/ income   $ (11,992 ) $ 18,107     $ (78,899 $ 62,878    
Adjusted net (loss)/ income    $ (12,265 (1) $ 8,599  (2)   $ (19,372 ) (1) $ 52,097  (2)  
Net cash (used in)/provided by operating activities    

$
 

(9,706
 

)
 

$
 

2,604
     

$
 

45,942
   

$
 

92,945
   
EBITDA   $ 19,915   $ 49,892     $ 48,575   $ 194,552    
Adjusted EBITDA   $ 19,972   (1) $ 40,144  (2)   $ 107,736   (1) $ 183,317  (2)  
(Loss)/ earnings per share (basic)   $ (0.08 $ 0.11     $ (0.50 $ 0.40    
Adjusted (loss)/income per share (basic)   $ (0.08 (1) $ 0.05  (2)   $ (0.12 ) (1) $ 0.33  (2)  

  

(1)  Adjusted EBITDA, Adjusted net (loss)/income and Adjusted (loss)/income per share (basic) for the three month period ended December 31, 2017 in this document exclude $0.1 million of non-cash stock-based compensation. In addition, Adjusted net (loss)/income and Adjusted (loss)/income per share (basic) for the three month period ended December 31, 2017 further exclude a $0.3 million write off of deferred finance income.

 Adjusted EBITDA, Adjusted net (loss)/income and Adjusted (loss)/income per share (basic) for the year ended December 31, 2017 in this document exclude $59.1 million of other-than-temporary impairment loss on equity investment in Navios Maritime Midstream Partners L.P. (“Navios Midstream”) and $0.1 million of non-cash stock-based compensation. In addition, Adjusted net (loss)/income and Adjusted net (loss)/income per share (basic) for the year ended December 31, 2017 further exclude a $0.4 million write-off of deferred finance costs. 

(2)  Adjusted EBITDA, Adjusted net (loss)/income and Adjusted (loss)/income per share (basic) for the three month period ended December 31, 2016 in this document exclude gain on sale of vessels of $9.5 million, gain on debt repayment of $0.4 million and non-cash stock-based compensation of $0.1 million.
In addition, Adjusted Net Income and Adjusted Earnings per share further exclude $0.2 million write off of deferred financing fees.

Adjusted EBITDA, Adjusted net (loss)/income and Adjusted (loss)/income per share (basic) for the year ended December 31, 2016 in this document exclude gain on sale of vessels of $11.7 million, non-cash stock-based compensation of $0.9 million and gain on debt repayment of $0.4 million. In addition, Adjusted net (loss)/income and Adjusted (loss)/income per share (basic) further exclude a $0.5 million write-off of deferred finance costs. 

 EBITDA, Adjusted EBITDA, Adjusted net (loss)/income and Adjusted (loss)/income per share (basic) are non-GAAP financial measures 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 December 31, 2017 and 2016

Revenue for the three month period ended December 31, 2017 decreased by $16.9 million, or 25.2%, to $50.3 million, as compared to $67.3 million for the same period of 2016. The decrease was mainly attributable to a: (i) decrease in the market rates during the fourth quarter ended December 31, 2017, as compared to the same period in 2016; and (ii) decrease in revenue by $0.7 million due to the sale of two chemical tankers in the fourth quarter of 2016. Available days of the fleet decreased to 3,225 days for the three month period ended December 31, 2017, as compared to 3,343 days for the three month period ended December 31, 2016. The time charter equivalent rate, or TCE Rate, decreased to $15,299 for the three month period ended December 31, 2017, from $19,683 for the three month period ended December 31, 2016.

Net loss for the three month period ended December 31, 2017 amounted to $12.0 million net loss as compared to $18.1 million net income for the same period of 2016. The decrease was due to a: (a) $20.2 million decrease in Adjusted EBITDA; (b) $9.5 million gain on sale of vessels incurred in the fourth quarter of 2016; (c) $0.5 million increase in direct vessel expenses; and (d) $0.4 million gain on debt repayment incurred in the fourth quarter of 2016; partially mitigated by a $0.4 million increase in interest income.

Adjusted EBITDA, affected by the items described in the table above, decreased by approximately $20.2 million to $20.0 million for the three month period ended December 31, 2017, as compared to $40.1 million for the same period of 2016. The decrease in Adjusted EBITDA was mainly due to a: (a) $16.9 million decrease in revenue, as described above; (b) $4.7 million increase in time charter expenses mainly due to the accrued backstop commitment to Navios Midstream; (c) $0.4 million increase in general and administrative expenses, partially mitigated by a: (i) $0.6 million decrease in other expense, net; (ii) $0.3 million decrease in management fees, mainly due to the sale of two chemical tankers in the fourth quarter of 2016, as discussed above; (iii) $0.9 million increase in equity in net earnings of affiliated companies; and (iv) $0.1 million increase in other income (excluding the $0.4 million gain on debt repayment incurred in the fourth quarter of 2016).

Years ended December 31, 2017 and 2016

Revenue for the year ended December 31, 2017 decreased by $63.0 million, or 21.7%, to $227.3 million, as compared to $290.2 million for the same period of 2016. The decrease was mainly attributable to a: (i) decrease in the market rates during the year ended December 31, 2017, as compared to the same period in 2016; and (ii) decrease in revenue by $10.8 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 12,904 days for the year ended December 31, 2017, as compared to 13,753 days for the year ended December 31, 2016. The TCE Rate decreased to $17,186 for the year ended December 31, 2017, from $20,742 for the year ended December 31, 2016.

Net loss for the year ended December 31, 2017 amounted to $78.9 million as compared to $62.9 million net income for the same period of 2016. Net loss was affected by the items described in the table above. Adjusted net loss for the year ended December 31, 2017 decreased by $71.5 million to $19.4 million net loss as compared to $52.1 million net income for the same period of 2016. The decrease was due to a: (a) $75.6 million decrease in Adjusted EBITDA; (b) $1.4 million increase in amortization of dry dock and special survey costs included in direct vessel expenses; and (c) $0.5 million increase in interest expense and finance cost; partially mitigated by a: (i) $5.3 million increase in interest income; and (ii) $0.7 million decrease in depreciation and amortization, due to the sale of one MR product tanker and two chemical tankers in 2016.

Adjusted EBITDA, affected by the items described in the table above, decreased by approximately $75.6 million to $107.7 million for the year ended December 31, 2017, as compared to $183.3 million for the same period of 2016. The decrease in Adjusted EBITDA was mainly due to a: (a) $63.0 million decrease in revenue, as described above; (b) $16.9 million increase in time charter expenses mainly due to the $16.4 million accrued backstop commitment to Navios Midstream; and (c) $3.1 million decrease in equity/ (loss) in net earnings of affiliated companies, (excluding the $59.1 million of non-cash impairment loss on equity investment in Navios Midstream), partially mitigated by a: (i) $2.3 million decrease in general and administrative expenses (excluding stock-based compensation); (ii) $2.9 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) $1.4 million decrease in other expense; 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 month periods ended and the years ended December 31, 2017 and 2016.

                                 
    Three month period ended
December 31,
    Year ended
December 31,
 
    2017
(unaudited)
    2016
(unaudited)
    2017
(unaudited)
    2016
(unaudited)
 
FLEET DATA                                
Available days(1)     3,225       3,343       12,904       13,753  
Operating days(2)     3,183       3,328       12,843       13,716  
Fleet utilization(3)     98.7     99.5     99.5     99.7
Vessels operating at period end       36       36       36       36  
AVERAGE DAILY RESULTS                                
Time charter equivalent rate per day(4)   $ 15,299     $ 19,683     $ 17,186     $ 20,742  

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, Wednesday, February 7, 2018 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, 2017.

US Dial In: +1.877.480.3873

International Dial In: +1.404.665.9927

Conference ID: 658 7587

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: 658 7587

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 stock repurchases, future dividends, future 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)
 
                     
        December 31,
2017
(unaudited)
    December 31,
2016
(unaudited)
 
ASSETS                    
Cash and cash equivalents, including restricted cash       $ 86,458     $ 56,658  
Accounts receivable, net         12,810       20,933  
Due from related parties, short term         13,931       25,047  
Prepaid expenses and other current assets         6,534       4,644  
Vessels, net         1,250,043       1,306,923  
Goodwill         1,579       1,579  
Other long-term assets         900       900  
Deferred dry dock and special survey costs, net         20,871       10,172  
Investment in affiliates         125,062       196,695  
Due from related parties, long-term         54,593       80,068  
Total assets       $ 1,572,781     $ 1,703,619  
LIABILITIES AND STOCKHOLDERS’ EQUITY                    
Accounts payable       $ 3,862     $ 4,855  
Accrued expenses         12,211       11,047  
Due to related parties, short-term         17,107       —   
Deferred revenue         5,028       8,519  
Long-term debt, including current portion, net of deferred finance costs and premium         1,065,369       1,095,938  
Deferred gain on sale of assets         6,729       7,829  
Puttable common stock 0 and 250,000 shares issued and outstanding with $0 and $2,500 redemption amount as of December 31, 2017 and December 31, 2016, respectively         —        2,500  
Total stockholders’ equity         462,475       572,931  
Total liabilities and stockholders’ equity       $ 1,572,781     $ 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     For the  
    Months     Months     Year     Year  
    Ended     Ended     Ended     Ended  
    December 31,     December 31,     December 31,     December 31,  
    2017
(unaudited)
    2016
(unaudited)
    2017
(unaudited)
    2016
(unaudited)
 
Revenue   $ 50,327     $ 67,262     $ 227,288     $ 290,245  
Time charter and voyage expenses     (6,126 )     (1,455 )     (21,919 )     (4,980 )
Direct vessel expenses     (1,318 )     (777 )     (4,198 )     (3,567 )
Management fees (entirely through related party transactions)     (23,938 )     (24,255 )     (94,973 )     (97,866 )
General and administrative expenses     (4,676 )     (4,265 )     (13,969 )     (17,057 )
Depreciation and amortization     (14,220 )     (14,220 )     (56,880 )     (57,617 )
Interest income     2,547       2,178       10,042       4,767  
Interest expenses and finance cost     (18,916 )     (18,966 )     (76,438 )     (75,987 )
Gain on sale of vessels     —        9,467       —        11,749  
Equity/ (loss) in net earnings of affiliated companies     4,551       3,683       (46,657 )     15,499  
Other income     82       364       82       377  
Other expense     (305 )     (909 )     (1,277 )     (2,685 )
                                 
Net (loss)/ income   $ (11,992   $   18,107     $ (78,899 )   $ 62,878  
                                 
Net (loss)/ income per share, basic   $ (0.08   $ 0.11     $ (0.50 )   $ 0.40  
Weighted average number of shares, basic     150,333,533       150,403,641       150,412,031       149,932,713  
Net (loss)/ income per share, diluted   $ (0.08   $ 0.11     $ (0.50 )   $ 0.40  
Weighted average number of shares, diluted     150,333,533       150,586,251       150,412,031       150,736,156  

 

                   
NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)
                   
        Year ended
December 31,
2017
(unaudited)
    Year ended
December 31,
2016
(unaudited)
   
Operating Activities                      
Net (loss)/ income       $ (78,899 )   $ 62,878    
Adjustments to reconcile net (loss)/ income to net cash provided by operating activities:                      
Depreciation and amortization         56,880       57,617    
Amortization and write-off of deferred finance costs and bond premium         3,784       3,656    
Gain on debt repayment         —        (350  
Amortization of dry dock and special survey costs         4,198       2,837    
Stock-based compensation         57       864    
Gain on sale of vessels         —        (11,749  
Equity/ (loss) in earnings of affiliates, net of dividends received         56,923       (1,438  
Changes in operating assets and liabilities:                      
(Increase) in prepaid expenses and other current assets         (2,390 )     (479  
Decrease/ (increase) in accounts receivable         8,123       (6,731  
Decrease/ (increase) in due from related parties short-term         11,116       (7,210  
(Increase)/ decrease in restricted cash         (26 )     224    
Decrease in other long term assets         —        1,020    
(Decrease)/ increase in accounts payable         (993 )     2,102    
Increase in accrued expenses         1,164       1,245    
Payments for dry dock and special survey costs         (14,897 )     (3,828  
Increase in due to related parties         17,107       —     
Increase in due from related parties long-term         (12,730 )     (7,638  
(Decrease) in deferred revenue         (3,475 )     (75  
                       
Net cash provided by operating activities       $ 45,942     $ 92,945    
                       
Investing Activities                      
Loan repayment from affiliated companies         55,132       —     
Net cash proceeds from sale of vessels         —        89,988    
Investment in affiliates         (84     (89  
Loans receivable from affiliates         (13,706 )     (4,275  
Loan receivable from affiliate, net of issuance fee and costs         —        (49,342  
Dividends received from affiliates         11,036       7,223    
                       
Net cash provided by investing activities       $ 52,378     $ 43,505    
                       
Financing Activities                      
Loan proceeds, net of deferred finance costs         49,764       —     
Loan repayments         (84,196 )     (105,531  
Dividend paid         (31,614 )     (31,682  
Decrease/ (increase) in restricted cash         2,085       (750  
Redemption of Convertible shares and puttable common stock         (2,500 )     (4,000  
                       
Net cash used in financing activities       $ (66,461 )   $ (141,963  
                       
Net increase/ (decrease) in cash and cash equivalents         31,859       (5,513  
Cash and cash equivalents, beginning of year         49,292       54,805    
                       
Cash and cash equivalents, end of year       $ 81,151     $ 49,292    

 

 
EXHIBIT II
 
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities
                           
    Three
Month
    Three
Month
               
    Period     Period     Year     Year  
    Ended     Ended     Ended     Ended  
    December 31,
2017
(unaudited)
    December 31,
2016
(unaudited)
    December 31,
2017
(unaudited)
    December 31,
2016
(unaudited)
  
Expressed in thousands of U.S. dollars                                
Net cash (used in)/ provided by operating activities   $ (9,706 )   $ 2,604     $ 45,942     $ 92,945  
Net (decrease)/ increase in operating assets     (2,717 )     9,065       (4,093 )     20,814  
Net decrease/ (increase) in operating liabilities     11,000       10,797       (13,803 )     (3,272 )
Net interest cost     16,369       16,788       66,396       71,220  
Amortization and write-off of deferred finance costs and bond premium     (462 )     (968 )     (3,784 )     (3,656 )
Gain on debt repayment     —        350       —        350  
Equity/ (loss) in net earnings of affiliates (including OTTI loss), net of dividends received     1,018       380       (56,923 )     1,438  
Payments for dry dock and special survey costs     4,470       1,478       14,897       3,828  
Gain on sale of vessels     —        9,467       —        11,749  
Stock-based compensation     (57 )     (69 )     (57 )     (864 )
EBITDA   $ 19,915     $ 49,892     $ 48,575     $ 194,552  
                                 
Other-than-temporary-impairment loss on equity investment ("OTTI loss")     —        —        59,104       —   
Gain on sale of vessels     —        (9,467 )     —        (11,749 )
Stock-based compensation     57        69       57        864  
Gain on debt repayment     —        (350 )     —        (350 )
Adjusted EBITDA   $ 19,972     $ 40,144     $ 107,736     $ 183,317  


    Three Month 
Period 
Ended 
December 31, 
2017 
(unaudited)
    Three Month
Period
Ended
December 31,
2016
(unaudited)
     

Year
Ended
December 31,
2017
(unaudited)
     

Year
Ended
December 31,
2016
(unaudited)
 
Net cash (used in)/ provided by operating activities   $ (9,706 ) $ 2,604     $ 45,942     $ 92,945  
Net cash provided by investing activities   $ 52,281   $ 73,671     $ 52,378     $ 43,505  
Net cash used in financing activities   $ (19,635 ) $ (70,219 )   $ (66,461 )   $ (141,963 )

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 vessels, gain/ (loss) on debt repayment 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 costs 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; (ix) gain/ (loss) on debt repayment; and (x) 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

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Navios Maritime Acquisition