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Navios Maritime Acquisition Corporation Reports Financial Results for the First Quarter Ended March 31, 2017

  • Net income: $5.6 million for Q1 2017; $0.04 per share
  • EBITDA: $37.4 million for Q1 2017
  • Quarterly dividend of $0.05 per share – consistently paid since 2010

MONACO, May 16, 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 first quarter ended March 31, 2017.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “For the first quarter of 2017, Navios Acquisition reported EBITDA of $37.4 million and Net income of $5.6 million. We also declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of approximately 12.0%.”

Angeliki Frangou continued, “Our business model has two distinct characteristics. First, we seek long-term charters when available. This provides above market earnings during times in which period employment is unavailable and the spot rates are contracting. For the first quarter of 2017, Navios Acquisition’s average charter rate for its fleet was about 42% higher than the spot market average for this fleet. Second, we enjoy economies of scale through our relationship with Navios Holdings. Navios Acquisition’s operating costs were approximately 17% lower than the average of its listed peers. These efficiencies created estimated savings of $22.8 million in 2016.”

HIGHLIGHTS — RECENT DEVELOPMENTS

Dividend of $0.05 per share of common stock

On May 12, 2017, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the first quarter of 2017 of $0.05 per share of common stock. The dividend is payable on June 14, 2017 to stockholders of record as of June 7, 2017 and provides a current annualized yield of 12.1%. 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 May 16, 2017, Navios Acquisition had contracted 90.4% of its available days on a charter-out basis for 2017, expecting to generate revenues of approximately $183.1 million. The average contractual daily charter-out rate for the fleet is expected to be $17,833.

Credit Facility

In May 2017, Navios Acquisition agreed to enter into a loan facility for an amount of up to $24.0 million with a commercial bank in order to refinance the existing facility of its two chemical tankers which matures in the first quarter of 2018. The facility will be repayable in 17 equal consecutive quarterly installments of $0.6 million each, with a balloon payment on the last repayment date. The facility matures in September 2021 and bears interest at LIBOR plus 300 bps per annum.

FINANCIAL HIGHLIGHTS

For the following results and the selected financial data presented herein, Navios Acquisition has compiled its consolidated statements of income for the three months ended March 31, 2017 and 2016. The quarterly information for 2017 and 2016 was derived from the unaudited condensed consolidated financial statements for the respective periods.

Three Month
Period ended
March 31, 2017
Three Month
Period ended
March 31, 2016
(Expressed in thousands of U.S. dollars)(unaudited) (unaudited)
Revenue$64,482 $80,419
EBITDA$37,381 $57,768
Net income$5,615 $23,770
Earnings per share (basic)$0.04 $0.15

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).

Revenue for the three month period ended March 31, 2017 decreased by $15.9 million or 19.8% to $64.5 million, as compared to $80.4 million for the same period in 2016. The decrease was mainly attributable to the: (i) decrease in the market rates during the first quarter ended March 31, 2017, as compared to the same period in 2016; and (ii) decrease in revenue by $3.8 million due to the sale of one MR2 product tanker in January 2016 and two chemical tankers in each of October and November 2016. Available days of the fleet decreased to 3,207 days for the three month period ended March 31, 2017, as compared to 3,477 days for the three month period ended March 31, 2016. The TCE Rate decreased to $19,475 for the three month period ended March 31, 2017, from $22,722 for the three month period ended March 31, 2016.

EBITDA for the three month period ended March 31, 2017 decreased by approximately $20.4 million to $37.4 million from $57.8 million in the same period of 2016. The decrease in EBITDA was mainly due to a: (a) $15.9 million decrease in revenue; (b) $2.3 million gain from sale of vessel incurred in the three month period ended March 31, 2016; (c) $2.1 million decrease in equity in net earnings of affiliated companies; and (d) $1.8 million increase in time charter expenses; partially mitigated by a (i) $0.8 million decrease in management fees, mainly due to the sale of one MR2 product tanker in January 2016 and two chemical tankers in October and November 2016, as discussed above; (ii) $0.8 million decrease in general and administrative expenses; and (iii) $0.2 million decrease in other expense, net.

Net income for the three month period ended March 31, 2017, decreased by approximately $18.2 million to $5.6 million compared to $23.8 million, for the same period in 2016. The decrease was due to a: (a) $20.4 million decrease in EBITDA; and (b) $0.2 million increase in direct vessel expenses; partially mitigated by a: (i) $1.5 million increase in interest income; (ii) $0.7 million decrease in depreciation and amortization; and (iii) $0.3 million decrease in interest expense and finance cost.

Fleet Employment Profile

The following table reflects certain key indicators of the performance of Navios Acquisition and its core fleet for the three months ended March 31, 2017 and 2016.

Three month period ended
March 31,
2017
(unaudited)
2016
(unaudited)
FLEET DATA
Available days(1) 3,207 3,477
Operating days(2) 3,202 3,470
Fleet utilization(3) 99.8% 99.8%
Vessels operating at period end 36 38
AVERAGE DAILY RESULTS
Time Charter Equivalent (“TCE”) Rate per day (4) $19,475 $ 22,722

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, Tuesday, May 16, 2017 at 8:30 am ET, at which time Navios Acquisition's senior management will provide highlights and commentary on earnings results for the first quarter ended March 31, 2017.

US Dial In: +1.877.480.3873

International Dial In: +1.404.665.9927

Conference ID: 2090 6871

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: 2090 6871

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)
March 31,
2017
(unaudite
d)

December 31,
2016
(unaudited)
ASSETS
Current assets
Cash and cash equivalents $58,973 $49,292
Restricted cash 13,159 7,366
Accounts receivable, net 15,925 20,933
Due from related parties, short-term 20,268 25,047
Prepaid expenses and other current assets 4,168 4,644
Total current assets 112,493 107,282
Vessels, net 1,292,703 1,306,923
Goodwill 1,579 1,579
Other long-term assets 900 900
Deferred dry dock and special survey costs, net 12,185 10,172
Investment in affiliates 193,232 196,695
Due from related parties, long-term 100,709 80,068
Total non-current assets 1,601,308 1,596,337
Total assets $1,713,801 $1,703,619
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable $4,175 $4,855
Accrued expenses 24,392 11,047
Due to related parties, short-term 2,404
Deferred revenue 7,577 8,519
Current portion of long-term debt, net of deferred finance costs 40,850 55,000
Total current liabilities 79,398 79,421
Long-term debt, net of current portion, premium and net of deferred finance costs 1,054,795 1,040,938
Deferred gain on sale of assets 7,470 7,829
Total non-current liabilities 1,062,265 1,048,767
Total liabilities $1,141,663 $1,128,188
Commitments and contingencies
Puttable common stock 150,000 and 250,000 shares issued and outstanding with $1,500 and $2,500 redemption amount as of March 31, 2017 and December 31, 2016, respectively 1,500 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 March 31, 2017 and December 31, 2016.
Common stock, $0.0001 par value; 250,000,000 shares authorized; 150,482,990 and 150,582,990 issued and outstanding as of March 31, 2017 and December 31, 2016, respectively 15 15
Additional paid-in capital 541,720 541,720
Retained Earnings 28,903 31,196
Total stockholders’ equity 570,638 572,931
Total liabilities and stockholders’ equity $1,713,801 $1,703,619


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 Months
Ended
March 31, 2017
(unaudited)
For the Three Months
Ended
March 31, 2016
(unaudited)
Revenue $64,482 $80,419
Time charter and voyage expenses (3,178) (1,421)
Direct vessel expenses (893) (644)
Management fees (23,418) (24,186)
General and administrative expenses (2,763) (3,529)
Depreciation and amortization (14,220) (14,883)
Interest income 2,194 654
Interest expenses and finance cost (18,847) (19,125)
Gain on sale of vessel 2,282
Equity in net earnings of affiliated companies 2,768 4,891
Other expense, net (510) (688)
Net income $5,615 $23,770
Net income per share, basic $0.04 $0.15
Weighted average number of shares, basic 150,500,768 149,253,315
Net income per share, diluted $0.04 $0.15
Weighted average number of shares, diluted 158,176,768 150,889,584


NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)
For the Three Months
Ended March 31, 2017
(unaudited)
For the Three Months
Ended March 31, 2016
(unaudited)
Operating Activities
Net income $5,615 $23,770
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 14,220 14,883
Amortization and write-off of deferred finance fees and bond premium 916 1,042
Amortization of dry dock and special survey costs 893 644
Stock based compensation 264
Gain on sale of vessel (2,282)
Equity in net earnings of affiliates, net of dividends received (308) (490)
Changes in operating assets and liabilities:
(Increase)/ decrease in prepaid expenses and other current assets (24) 2,309
Decrease/ (increase) in accounts receivable 5,008 (2,478)
Decrease/ (increase) in due from related parties, short-term 4,779 (8,401)
Increase in restricted cash (51) (70)
Increase in other long term assets (4,608)
Increase in due from related parties, long-term (14,697) (8,711)
(Decrease)/ increase in accounts payable (680) 907
Increase in accrued expenses 13,345 13,933
Payments for dry dock and special survey costs (2,907)
Increase in due to related parties, short-term 2,404
Decrease in deferred revenue (928) (4,651)
Net cash provided by operating activities $27,585 $26,061
Investing Activities
Loans receivable from affiliates (5,259) (4,275)
Dividends received from affiliates 2,864 918
Investment in affiliates (79)
Net cash proceeds from sale of vessel 18,449
Net cash (used in)/ provided by investing activities $(2,474) $15,092
Financing Activities
Loan proceeds, net of deferred finance costs 26,008
Loan repayments (26,788) (23,514)
Dividend paid (7,908) (7,928)
(Increase) /decrease in restricted cash (5,742) 1,125
Redemption of convertible shares and puttable common stock (1,000) (1,000)
Net cash used in financing activities $(15,430) $(31,317)
Net increase in cash and cash equivalents 9,681 9,836
Cash and cash equivalents, beginning of year 49,292 54,805
Cash and cash equivalents, end of period $58,973 $64,641


EXHIBIT II
Reconciliation of EBITDA to Net Cash from Operating Activities
Expressed in thousands of U.S. dollars Three Month Period
Ended March 31, 2017
(unaudited)
Three Month Period
Ended March 31, 2016
(unaudited)
Net cash provided by operating activities $27,585 $26,061
Net increase in operating assets 7,892 21,959
Net increase in operating liabilities (14,141) (10,189)
Net interest cost 16,653 18,471
Amortization of deferred finance costs and bond premium (916) (1,042)
Equity in net earnings of affiliates, net of dividends received 308 490
Stock based compensation (264)
Gain on sale of vessel 2,282
EBITDA $37,381 $57,768


Three Month Period
Ended March 31, 2017
(unaudited)
Three Month Period
Ended March 31, 2016
(unaudited)
Net cash provided by operating activities $27,585 $26,061
Net cash (used in)/ provided by investing activities $(2,474) $15,092
Net cash used in financing activities $(15,430) $(31,317)

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
VesselsTypeYear Built/DeliveryDWT
Date
Owned Vessels
Nave PolarisChemical Tanker2011 25,145
Nave CosmosChemical Tanker2010 25,130
Nave VelocityMR2 Product Tanker201549,999
Nave SextansMR2 Product Tanker201549,999
Nave PyxisMR2 Product Tanker201449,998
Nave LuminosityMR2 Product Tanker201449,999
Nave JupiterMR2 Product Tanker2014 49,999
BougainvilleMR2 Product Tanker2013 50,626
Nave AlderaminMR2 Product Tanker2013 49,998
Nave BellatrixMR2 Product Tanker2013 49,999
Nave CapellaMR2 Product Tanker2013 49,995
Nave OrionMR2 Product Tanker2013 49,999
Nave TitanMR2 Product Tanker2013 49,999
Nave AquilaMR2 Product Tanker2012 49,991
Nave AtriaMR2 Product Tanker2012 49,992
Nave OrbitMR2 Product Tanker2009 50,470
Nave EquatorMR2 Product Tanker2009 50,542
Nave EquinoxMR2 Product Tanker2007 50,922
Nave PulsarMR2 Product Tanker2007 50,922
Nave DoradoMR2 Product Tanker2005 47,999
Nave AtroposLR1 Product Tanker2013 74,695
Nave RigelLR1 Product Tanker2013 74,673
Nave CassiopeiaLR1 Product Tanker2012 74,711
Nave CetusLR1 Product Tanker2012 74,581
Nave EstellaLR1 Product Tanker2012 75,000
Nave AndromedaLR1 Product Tanker2011 75,000
Nave AriadneLR1 Product Tanker2007 74,671
Nave CieloLR1 Product Tanker2007 74,671
Nave Buena SuerteVLCC2011 297,491
Nave QuasarVLCC2010 297,376
Nave SynergyVLCC2010 299,973
Nave GalacticVLCC2009 297,168
Nave SphericalVLCC2009 297,188
Nave PhotonVLCC2008 297,395
Nave NeutrinoVLCC2003 298,287
Nave ElectronVLCC2002 305,178


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

Source:Navios Maritime Acquisition

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