NNA Navios Maritime Acquisition Corporation

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, 2016. 

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “We are pleased to report first quarter 2016 net income of almost $24.0 million, or $0.15 per share, an increase of 19% over the first quarter of 2015. Tanker fundamentals remain constructive, and we declared a dividend of $0.05 per share for the quarter, resulting in a dividend yield of about 12% on an annualized basis.”

Angeliki Frangou continued, “Navios Acquisition continues to harness the economies of scale created by Navios Holdings. Under the arrangement, Navios Holdings provides Navios Acquisition technical and commercial management services for a fixed fee and administrative services at cost. Navios Holdings does not charge, unlike some peers, any transaction fee, loan origination fee, sale or purchase fee or any other fee for creating value. We believe that the significant cost savings, which we estimate would have been more than $30.0 million in each of 2015 and 2014 as compared to publicly listed peers, further demonstrate the substantial benefit of the overarching relationship between Navios Holdings and Navios Acquisition and the value it delivers to all our stakeholders.“ 

HIGHLIGHTS — RECENT DEVELOPMENTS

Dividend of $0.05 per share of common stock

On May 11, 2016, the Board of Directors of Navios Acquisition declared a quarterly cash dividend for the first quarter of 2016 of $0.05 per share of common stock. The dividend is payable on June 22, 2016 to stockholders of record as of June 17, 2016 and provides a current annualized yield of 11.8%.

Commercial and technical management fees fixed until May 2018

Navios Acquisition fixed the fees of its vessels under its existing management agreement with Navios Tankers Management Inc., a wholly-owned subsidiary of Navios Maritime Holdings Inc. (“Navios Holdings”), for an additional two-year period from May 29, 2016, following the expiration of the current fixed fee period, until May 28, 2018, at a daily fee of: (a) $6,350 per MR2 product tanker and chemical tanker vessel; (b) $7,150 per LR1 product tanker vessel; and (c) $9,500 per VLCC. The increase represents a weighted average increase of 3% in the management fees of the fleet. Drydocking expenses are reimbursed at cost for all vessels.

Profit sharing

During the first quarter of 2016, Navios Acquisition benefited from the healthy spot market and earned $6.1 million under its profit sharing arrangements.

Sale of Vessels

On January 27, 2016, Navios Acquisition sold the Nave Lucida, a 2005-built, MR2 product tanker to an unaffiliated third party for a sale price of $18.6 million.

In April 2016, Navios Acquisition agreed to sell to an unaffiliated third party the Nave Constellation, a 2013-built chemical tanker of 45,281 dwt, and the Nave Universe, a 2013-built chemical tanker of 45,513 dwt, for an aggregate sale price of $74.6 million. The vessels are expected to be sold in the third quarter of 2016, following the completion of their chartering commitments.

Time Charter Coverage

Navios Acquisition currently owns 38 vessels of which eight are VLCCs, 26 are product tankers and four are chemical tankers including the two vessels that Navios Acquisition has agreed to sell following the completion of their chartering commitments, expected in the third quarter of 2016.

As of May 19, 2016, Navios Acquisition had contracted 95.2% and 53.0% of its available days on a charter-out basis for 2016 and 2017, respectively, expecting to generate revenues of approximately $232.3 million and $110.6 million, respectively. The average contractual daily charter-out rate for the fleet is expected to be $20,107 and $21,419 for 2016 and 2017, respectively.

FINANCIAL HIGHLIGHTS

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

		Three Month Period endedMarch 31, 2016			Three Month Period endedMarch 31, 2015
(Expressed in thousands of U.S. dollars)		(unaudited)			(unaudited)
Revenue	$	80,419		$	78,611
EBITDA	$	57,768		$	53,208
Adjusted EBITDA(1)	$	55,750		$	53,864
Net income	$	23,770		$	20,034
Earnings per share (basic)	$	0.15		$	0.13

	(1	)	Adjusted EBITDA for the three month period ended March 31, 2016 in this document excludes gain on sale of vessel of $2.3 million and non-cash stock-based compensation of $0.3 million.  Adjusted EBITDA for the three months ended March 31, 2015, in this document exclude a $0.7 million non-cash share based compensation expense.

EBITDA and Adjusted EBITDA 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 March 31, 2016 and 2015   

Revenue for the three month period ended March 31, 2016 increased by $1.8 million or 2.3% to $80.4 million, as compared to $78.6 million for the same period in 2015. The increase was mainly attributable to the increase in revenue following deliveries of four vessels from January 2015 until March 31, 2016. The increase was partially mitigated by: (i) $7.6 million due to the sale of two VLCCs in June 2015 and one MR2 in January 2016; and (ii) a decrease in profit sharing by $1.5 million to $6.1 million recognized in the three month period ended March 31, 2016, as compared to $7.6 million for the same period in 2015. Available days of the fleet increased to 3,477 days for the three month period ended March 31, 2016, as compared to 3,438 days for the three month period ended March 31, 2015. The TCE Rate slightly increased to $22,722 for the three month period ended March 31, 2016, from $22,521 for the three month period ended March 31, 2015.

Adjusted EBITDA for the three month period ended March 31, 2016 increased by approximately $1.9 million to $55.8 million from $53.9 million in the same period of 2015. The increase in Adjusted EBITDA was mainly due to: (i) a $1.8 million increase in revenue as described above; and (ii) a $1.5 million increase in equity in net earnings of affiliated companies. This increase was partially mitigated by a: (a) $0.8 million increase in general and administrative expenses; (b) $0.2 million increase in time charter expenses; (c) $0.2 million increase in other expense, net; and (d) $0.1 million increase in management fees.

Net income for the three month period ended March 31, 2016, increased by approximately $3.7 million to $23.8 million compared to a $20.0 million, for the three month period ended March 31, 2015. The increase was due to: (i) the gain on sale of the Nave Lucida of $2.3 million; (ii) an increase of $1.9 million in Adjusted EBITDA; (iii) an increase of $0.4 million in interest income; and (iv) a decrease of $0.4 million in share-based compensation. The increase was partially mitigated by a: (a) $0.9 million increase in interest expense and finance cost; and (b) $0.3 million increase in direct vessel expenses.

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, 2016 and 2015.

		Three month period endedMarch 31,
		2016(unaudited)				2015(unaudited)
FLEET DATA
Available days(1)			3,477				3,438
Operating days(2)			3,470				3,425
Fleet utilization(3)			99.8	%			99.6	%
Time Charter Equivalent per day(4)		$	22,722			$	22,521
Vessels operating at period end			38				39

(1) Available days: Available days for the fleet represent the total calendar days the vessels were in Navios Acquisition’s possession for the relevant period after subtracting off-hire days associated with scheduled repairs, drydockings 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, drydockings or special surveys.                               

(4) TCE Rate: Time Charter Equivalent Rate 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 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, May 19, 2016 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, 2016.

US Dial In: +1.877.480.3873

International Dial In: +1.404.665.9927

Conference ID: 9123 8280

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: 9123 8280

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, 2016 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 drydocking 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. 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 31,2016(unaudited)				December 31,2015(unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	64,641			$	54,805
Restricted cash			5,786				6,840
Accounts receivable, net			16,680				14,202
Due from related parties, short-term			26,238				17,837
Prepaid expenses and other current assets			1,356				3,665
Total current assets			114,701				97,349
Vessels, net			1,411,729				1,441,635
Goodwill			1,579				1,579
Other long-term assets			6,528				1,920
Deferred dry dock and special survey costs, net			8,537				10,326
Investment in affiliates			203,850				204,808
Due from related parties, long-term			29,989				16,474
Total non-current assets			1,662,212				1,676,742
Total assets		$	1,776,913			$	1,774,091
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	3,660			$	2,753
Accrued expenses			23,735				9,802
Deferred revenue			3,220				7,600
Current portion of long-term debt, net of deferred finance costs			75,567				62,643
Total current liabilities			106,182				82,798
Long-term debt, net of current portion, premium and net of deferred finance costs			1,099,543				1,134,940
Deferred gain on sale of assets			8,711				8,982
Total non-current liabilities			1,108,254				1,143,922
Total liabilities		$	1,214,436			$	1,226,720
Commitments and contingencies			—				—
Puttable common stock 550,000 and 650,000 shares issued and outstanding with $5,500 and $6,500 redemption amount as of March 31, 2016 and December 31, 2015, respectively			5,500				6,500
Stockholders’ equity
Preferred stock, $0.0001 par value; 10,000,000 shares authorized; 1,000 series C shares and 4,000 series A and C shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively			—				—
Common stock, $0.0001 par value; 250,000,000 shares authorized; 150,882,990 and 149,782,990 issued and outstanding as of March 31, 2016 and December 31, 2015, respectively			15				15
Additional paid-in capital			541,120				540,856
Retained earnings			15,842				—
Total stockholders’ equity			556,977				540,871
Total liabilities and stockholders’ equity		$	1,776,913			$	1,774,091

  

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 MonthsEndedMarch 31, 2016(unaudited)					For the Three MonthsEndedMarch 31, 2015(unaudited)
Revenue				$	80,419				$	78,611
Time charter and voyage expenses					(1,421		)			(1,190			)
Direct vessel expenses					(644		)			(349			)
Management fees					(24,186		)			(24,042			)
General and administrative expenses					(3,529		)			(3,165			)
Depreciation and amortization					(14,883		)			(14,891			)
Interest income					654					271
Interest expenses and finance cost					(19,125		)			(18,205			)
Gain on sale of vessel					2,282					—
Equity in net earnings of affiliated companies					4,891					3,438
Other expense, net					(688		)			(444			)
Net income				$	23,770				$	20,034
Dividend declared on preferred shares Series B					—					(27			)
Dividend on preferred shares Series D					—					(138			)
Dividend declared on restricted shares					(35		)			(70			)
Undistributed income attributable to Series C participating preferred shares					(1,161		)			(962			)
Net income attributable to common shareholders, basic				$	22,574				$	18,837
Dividend declared on preferred shares Series B					—					27
Dividend on preferred shares Series D					—					138
Dividend declared on restricted shares					35					70
Net income attributable to common shareholders, diluted				$	22,609				$	19,072
Net income per share, basic				$	0.15				$	0.13
Weighted average number of shares, basic					149,253,315					150,333,825
Net income per share, diluted				$	0.15				$	0.12
Weighted average number of shares, diluted					150,421,452					154,490,307

NAVIOS MARITIME ACQUISITION CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of U.S. dollars)
				For the Three MonthsEnded March 31, 2016(unaudited)						For the Three MonthsEnded March 31, 2015(unaudited)
Operating Activities
Net income				$	23,770					$	20,034
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization					14,883						14,891
Amortization and write-off of deferred finance fees and bond premium					1,042						730
Amortization of dry dock and special survey costs					644						349
Stock-based compensation					264						656
Gain on sale of vessel					(2,282		)				—
Equity in net earnings of affiliated companies, net of dividends received					(490		)				(3,438		)
Changes in operating assets and liabilities:
Decrease in prepaid expenses and other current assets					2,309						3,274
Increase in accounts receivable					(2,478		)				(7,257		)
Increase in due  from related parties short-term					(8,401		)				(418		)
(Increase)/ decrease in restricted cash					(70		)				19
Increase in other long term assets					(4,608		)				(750		)
Increase in due from related parties long-term					(8,711		)				—
Increase in accounts payable					907						400
Increase in accrued expenses					13,933						14,867
Decrease in due to related parties					—						(13,311		)
(Decrease)/ increase in deferred revenue					(4,651		)				4,064
Net cash provided by operating activities				$	26,061					$	34,110
Investing Activities
Acquisition of vessels					—						(29,597		)
Loans receivable from Navios Europe (II) Inc.					(4,275		)				—
Dividends received from affiliates					918						2,164
Net cash proceeds from sale of vessels					18,449						—
Net cash provided by/ (used in) investing activities				$	15,092					$	(27,433		)
Financing Activities
Loan proceeds, net of deferred finance costs					—						25,954
Loan repayments					(23,514		)				(9,483		)
Dividend paid					(7,928		)				(8,132		)
Decrease in restricted cash					1,125						995
Redemption of convertible shares and puttable stock					(1,000		)				(2,500		)
Payment to related party					—						(10,401		)
Net cash used in financing activities				$	(31,317		)			$	(3,567		)
Net increase in cash and cash equivalents					9,836						3,110
Cash and cash equivalents, beginning of year					54,805						54,493
Cash and cash equivalents, end of year				$	64,641					$	57,603

 

EXHIBIT II
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities
Expressed in thousands of U.S. dollars		Three Month PeriodEnded March 31, 2016(unaudited)				Three Month PeriodEnded March 31, 2015(unaudited)
Net cash provided by operating activities		$	26,061			$	34,110
Net increase in operating assets			21,959				5,132
Net increase in operating liabilities			(10,189	)			(6,020	)
Net interest cost			18,471				17,934
Amortization of deferred finance costs			(1,042	)			(730	)
Equity in net earnings of affiliated companies, net of dividends received			490				3,438
Gain on sale of vessel			2,282				—
Stock based compensation			(264	)			(656	)
EBITDA			57,768				53,208
Gain on sale of vessel			(2,282	)			—
Stock based compensation			264				656
Adjusted EBITDA		$	55,750			$	53,864
		Three Month PeriodEnded March 31, 2016(unaudited)				Three Month PeriodEnded March 31, 2015(unaudited)
Net cash provided by operating activities		$	26,061			$	34,110
Net cash provided by/ (used in) investing activities		$	15,092			$	(27,433	)
Net cash used in financing activities		$	(31,317	)		$	(3,567	)

Disclosure of Non-GAAP Financial Measures

EBITDA and Adjusted EBITDA 

EBITDA for the three months ended March 31, 2016 in this document represents net income plus interest and finance costs plus depreciation and amortization and income taxes less interest income.

Adjusted EBITDA for the three months ended March 31, 2016 in this document represents, net income plus interest expense and finance cost, plus depreciation and amortization less interest income, unless otherwise stated and excludes certain items as described under “Financial Highlights.”

EBITDA and Adjusted EBITDA are presented because Navios Acquisition believes that EBITDA and Adjusted EBITDA are a 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. EBITDA and Adjusted EBITDA are “non-GAAP financial measures” and should not be considered a substitute for net income, cash flow from operating activities and other operations or cash flow statement data prepared in accordance with accounting principles generally accepted in the United States or as a measure of profitability or liquidity.

While EBITDA and Adjusted EBITDA are frequently used as a measure of operating results and the ability to meet debt service requirements, the definition of EBITDA and Adjusted EBITDA used here may not be comparable to that used by other companies due to differences in methods of calculation.

					EXHIBIT III
Vessels	Type		Year Built/Delivery		DWT
			Date
Owned Vessels
Nave Constellation(1)	Chemical Tanker		2013			45,281
Nave Universe(1)	Chemical Tanker		2013			45,513
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

(1) Vessel is expected to be sold in the third quarter of 2016, following the completion of its chartering commitments.

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