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.  

(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.

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

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

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.