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 fourth quarter and the year ended December 31, 2019.

Angeliki Frangou, Chairman and Chief Executive Officer of Navios Acquisition stated, “I am pleased with our results for the fourth quarter and full year of 2019.  For the fourth quarter, Navios Acquisition recorded revenue of $85.4 million and EBITDA of $45.9 million, representing increases of about 46% and 149%, respectively, over the fourth quarter of 2018. For the full year of 2019, Navios Acquisition recorded revenue of $280.1 million and EBITDA of $128.4 million, representing increases of about 49% and 170%, respectively, over 2018. We declared a quarterly distribution of $0.30 cents per share for the fourth quarter. ”​

Angeliki Frangou continued, “We believe that Navios Acquisition is well positioned for 2020. We have visibility on revenue through our chartering activities, with 69% of available days fixed in 2020 and about $400 million in long-term contracted revenue overall. We also have visibility on cost through the management agreement. However, we cannot determine the impact of the coronavirus in China on our market, as the fluid situation makes it impossible to assess accurately potential ramifications. “  

HIGHLIGHTS — RECENT DEVELOPMENTS 

Quarterly dividend: $0.30 per share 

On January 22, 2020, the Board of Directors declared a quarterly cash dividend in respect of the fourth quarter of 2019 of $0.30 per share of common stock which will be paid on April 7, 2020 to stockholders of record as of March 5, 2020. 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.  

Liquidation of Navios Europe Inc. (“Navios Europe I”)

During the quarter ended December 31, 2019, Navios Acquisition acquired five product tankers, two Long Range one (“LR1”) product tankers and three Medium Range one (“MR1”) product tankers for an acquisition cost of approximately $84.4 million in total, following the liquidation of Navios Europe I.

Debt developments

In December 2019, Navios Acquisition entered into a loan agreement with Deutsche Bank AG Filiale Deutschlandgeschäft of up to $32.5 million in order to finance two MR1s and one LR1 acquired from Navios Europe I. The facility is repayable in one single repayment on the last repayment date. The facility matures in June 2020 and bears interest at LIBOR plus 400 bps per annum. 

Following the acquisition of the Star N and the Hector N MR1 product tankers from Navios Europe I, the vessels were offered as collateral under its ship mortgage notes , in substitution of an amount of $25.4 million that was held as cash collateral from the sale proceeds of the Nave Electron. 

Continuous Offering Program

On November 29, 2019, Navios Acquisition entered into a Continuous Offering Program Sales Agreement, pursuant to which Navios Acquisition issued and sold from time to time through the sales agent common shares having an aggregate offering price of up to $25.0 million. As of December 31, 2019, Navios Acquisition issued 270,020 common shares and received net proceeds of $2.1 million.

Fleet employment

As of Februray 6, 2020, Navios Acquisition’s fleet consisted of a total of 46 vessels, of which 13 are VLCCs (including three bareboat chartered-in VLCCs expected to be delivered in the third and fourth quarters of 2020 and the third quarter of 2021), 31 are product tankers, two are chemical tankers. 

Following the liquidation of Navios Europe I, Navios Acquisition acquired three MR1 product tankers and two LR1 product tankers. As per management agreement, management fees are fixed for two years commencing from January 1, 2020 at: (a) $6,825 per day per MR1 product tanker; and (b) $7,225 per day per LR1 product tanker vessel. The agreement also provides for a technical and commercial management fee of $50 per day per vessel and an annual increase of 3% after January 1, 2022 for the remaining period unless agreed otherwise. Drydocking expenses are reimbursed at cost for all vessels.

Currently, Navios Acquisition has contracted 68.8% of its available days on a charter-out basis for 2020, which are expected to generate revenues of approximately $179.2 million. The average base contractual net daily charter-out rate for the 58.6% of available days that are contracted on base rate and/or base rate with profit sharing arrangements is expected to be $19,334.

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, 2019 and 2018. The quarterly information for 2019 and 2018 was derived from the unaudited condensed consolidated financial statements for the respective periods.  

Following the completion of the merger, effective as of December 13, 2018, Navios Midstream Partners L.P. (“Navios Midstream”) is included in the consolidated financial statements of Navios Acquisition, as a wholly-owned subsidiary.

(Expressed in thousands of U.S. dollars)	Three Month Period ended December 31,  2019 (unaudited)				Three Month Period ended December 31,  2018 (unaudited)					Yearended December 31,  2019(unaudited)					Yearended December 31, 2018
Revenue	$	85,448			$	58,728				$	280,117				$	187,946
Net Earnings/ (Loss)	$	6,644			$	(16,431	)			$	(65,441	)			$	(86,373	)
Adjusted net earnings/ (loss)	$	4,919	(1)		$	(13,996	)	(3)		$	(29,261	)	(2)		$	(76,826	)	(4)
Net cash provided by / (used in) operating activities	$	8,186			$	(14,854	)			$	29,244				$	(38,709	)
EBITDA	$	45,881			$	18,453				$	128,441				$	47,567
Adjusted EBITDA	$	44,156	(1)		$	20,888		(3)		$	131,452		(2)		$	56,798		(4)
Earnings/ (Loss) per share (basic)	$	0.44			$	(1.55	)			$	(4.75	)			$	(8.40	)
Adjusted Earnings/ (Loss) per share (basic)	$	0.33	(1)		$	(1.33	)	(3)		$	(2.14	)	(2)		$	(7.48	)	(4)

(1)	EBITDA, net earnings and earnings per share (basic) for the three month period ended December 31, 2019 has been adjusted to exclude $1.9 million gain related to debt extinguishment and $0.2 million of non-cash stock based compensation.
(2)	EBITDA for the year ended December 31, 2019 has been adjusted to exclude $7.3 million impairment loss relating to the sale of one VLCC, $3.2 million gain on sale of vessel, $1.9 million gain related to debt extinguishment and $0.9 million of non- cash stock based compensation. Net loss and loss per share (basic) for the year ended December 31, 2019 have been further adjusted to exclude $32.7 million accelerated amortization of intangible assets and $0.5 million write off of deferred finance costs.
(3)	EBITDA, net loss and loss per share (basic) for the three month period ended December 31, 2018 have been adjusted to exclude (i) $2.2 million transaction costs in relation to the merger with Navios Midstream; and (ii) $0.3 million of non-cash stock-based compensation.
(4)	EBITDA, net loss and loss per share (basic) for the year ended December 31, 2018 have been adjusted to exclude; (i) $6.0 million of non-cash impairment loss relating to our affiliate, Navios Midstream; (ii) $2.2 million transaction costs in relation to the merger with Navios Midstream; (iii) $1.1 million of non-cash stock-based compensation; and (iv) $0.03 million of gain on sale of the Nave Galactic. Net loss and loss per share (basic) for the year ended December 31, 2018 were further adjusted to exclude $0.3 million write-off of deferred finance costs.
	EBITDA, Adjusted EBITDA, Adjusted net earnings/ (loss) and Adjusted earnings/ (loss) 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, 2019 and 2018

Revenue for the three month period ended December 31, 2019 increased by $26.7 million, or 45.5%, to $85.4 million, as compared to $58.7 million for the same period of 2018. The increase was mainly attributable to an: (i) increase in revenue by $16.1 million due to the acquisition and resulting consolidation of Navios Midstream; (ii) increase in revenue by $1.0 million due to the acquisition of five product tankers of Navios Europe I in December 2019; and (iii) increase in market rates during the three month period ended December 31, 2019 as compared to the same period of 2018. Available days of the fleet increased to 3,429 days for the three month period ended December 31, 2019, as compared to 3,297 days for the three month period ended December 31, 2018, mainly as a result of the merger with Navios Midstream effective as of December 13, 2018 and as a result of the acquisition of five product tankers of Navios Europe I in December 2019. The time charter equivalent rate, or TCE Rate, increased to $22,484 for the three month period ended December 31, 2019, from $15,483 for the three month period ended December 31, 2018.

Time charter and voyage expenses for the three month period ended December 31, 2019 decreased by $1.5 million, or 15.2%, to $8.4 million, as compared to $9.8 million for the same period of 2018. The decrease was mainly attributable to approximately $2.2 million of backstop commitment incurred in the three month period ended December 31, 2018; partially mitigated by a: (i) $0.4 million increase in bunkers consumption and voyage expenses due to spot voyages incurred in the three month period ended December 31, 2019; and (ii) $0.4 million increase in brokers’ commission.

Net earnings for the three month period ended December 31, 2019 was $6.6 million as compared to $16.4 million loss for the same period of 2018. Net earnings was affected by the items described in the table above. Adjusted net earnings for the three month period ended December 31, 2019 was $5.0 million as compared to $14.0 million adjusted net loss for the same period of 2018. The increase in adjusted net earnings was mainly attributable to a $23.3 million increase in adjusted EBITDA; partially mitigated by a: (i) $1.9 million increase in interest expense and finance cost; (ii) $1.2 million decrease in interest income; (iii) $0.9 million increase in depreciation and amortization, due to the acquisition of Navios Midstream in December 2018 and $0.2 million increase in depreciation and amortization, due to the acquisition of five product tankers of Navios Europe I in December 2019; and (iv) $0.1 million increase in direct vessel expenses (in relation to amortization of dry dock and special survey cost).

Adjusted EBITDA affected by the items described in the table above, for the three month period ended December 31, 2019 increased by approximately $23.3 million to $44.2 million, as compared to $20.9 million for the same period of 2018. The increase in Adjusted EBITDA was mainly due to a: (a) $26.7 million increase in revenue; (b) $1.5 million decrease in time charter and voyage expenses; and (c) $1.5 million decrease in other expense; partially mitigated by a: (i) $2.9 million decrease in equity in net earnings of affiliated companies; (ii) $1.7 million increase in management fees mainly due to the acquisition of Navios Midstream in December 2018 and $0.5 million increase in management fees due to the acquisition of five product tankers of Navios Europe I in December 2019; (iii) $0.9 million increase in general and administrative expenses (excluding stock-based compensation and transaction costs in relation to the merger of Navios Midstream in the fourth quarter of 2018); and (iv) $0.5 million increase in direct vessel expenses (other than amortization of dry dock and special survey cost).

Year ended December 31, 2019 and 2018

Revenue for the year ended December 31, 2019 increased by approximately $92.2 million, or 49.0%, to $280.1 million, as compared to $188.0 million for the same period of 2018. The increase was mainly attributable to an: (i) increase in revenue by $62.2 million due to the acquisition and resulting consolidation of Navios Midstream; (ii) increase in revenue by $1.0 million due to the acquisition of five product tankers of Navios Europe I; and (iii) increase in market rates during the year ended December 31, 2019 as compared to the same period of 2018. Available days of the fleet increased from 12,735 days for the year ended December 31, 2018, to 14,107 days for the year ended December 31, 2019. The TCE Rate increased from $13,855 for the year ended December 31, 2018, to $18,248 for the year ended December 31, 2019.

Time charter and voyage expenses for the year ended December 31, 2019 decreased by $8.9 million to $22.7 million as compared to $31.6 million for the year ended December 31, 2018. The decrease was attributable to $20.1 million of backstop commitment to Navios Midstream incurred in the year ended December 31, 2018; partially mitigated by a: (i) $9.7 million increase in bunkers consumption and voyage expenses due to spot voyages incurred in the year ended December 31, 2019; and (ii) $1.7 million increase in broker commission costs.

Net loss for the year ended December 31, 2019 was $65.4 million as compared to $86.4 million loss for the same period of 2018. Net loss was affected by the items described in the table above. Adjusted net loss for the year ended December 31, 2019 was $29.3 million as compared to $76.8 million for the same period of 2018. The decrease in adjusted net loss was mainly due to a $74.7 million increase in adjusted EBITDA; partially mitigated by: (i) a $13.3 million increase in interest expense and finance cost; (ii) an $11.4 million increase in depreciation and amortization, due to the acquisition of Navios Midstream in December 2018 and $0.2 million increase in depreciation and amortization, due to the acquisition of five product tankers of Navios Europe I in December 2019; (iii) a $1.9 million increase in direct vessel expenses (in relation to amortization of dry dock and special survey cost); and (iv) a $0.3 million decrease in interest income.

Adjusted EBITDA affected by the items described in the table above, for the year ended December 31, 2019 increased by $74.7 million to $131.5 million, as compared to $56.8 million for the same period of 2018. The increase in Adjusted EBITDA was mainly due to: (a) a $92.2 million increase in revenue; (b) an $8.9 million decrease in time charter and voyage expenses; (c) a $2.7 million decrease in other expense; and (d) a $1.3 million increase in other income; partially mitigated by: (i) a $13.2 million increase in management fees due to the acquisition of Navios Midstream in December 2018 and to the amendment of the fees under the Management Agreement in May 2018 and $0.5 million increase in management fees due to the acquisition of five product tankers of Navios Europe I in December 2019; (ii) a $10.7 million decrease in equity in net earnings of affiliated companies (excluding the $6.0 million of negative effect on equity/ (loss) in net earnings of affiliated companies, relating to the sale of the Shinyo Kannika by Navios Midstream); (iii) a $5.5 million increase in general and administrative expenses (excluding stock-based compensation) and transaction costs in relation to the merger of Navios Midstream in the fourth quarter of 2018); and (iv) $0.5 million increase in direct vessel expenses (other than amortization of dry dock and special survey cost).

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 and years ended December 31, 2019 and 2018.

		Three month period ended December 31,								Year ended December 31,
		2019 (unaudited)				2018 (unaudited)				2019 (unaudited)				2018 (unaudited)
FLEET DATA
Available days(1)			3,429				3,297				14,107				12,735
Operating days(2)			3,409				3,278				14,051				12,665
Fleet utilization(3)			99.4	%			99.4	%			99.6	%			99.4	%
Vessels operating at period end			43				41				43				41
AVERAGE DAILY RESULTS
Time charter equivalent rate per day(4)		$	22,484			$	15,483			$	18,248			$	13,855

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, February, 6, 2020 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 year ended December 31, 2019.

US Dial In: +1.877.480.3873International Dial In: +1.404.665.9927Conference ID: 106 4957

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: +1.800.585.8367International Replay Dial In: +1.404.537.3406Conference ID: 106 4957

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 AcquisitionNavios 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, expected cash flow generation and Navios Acquisition’s growth strategy and measures to implement such strategy, including expected vessel acquisitions and entering into further employment contracts. 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 employment contracts. 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 risks and are based upon a number of assumptions and estimates that 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 Navios Acquisition’s filings with the SEC, 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+1.212.906.8644info@navios-acquisition.com

EXHIBIT I
NAVIOS MARITIME ACQUISITION CORPORATION
SELECTED BALANCE SHEET DATA
(Expressed in thousands of U.S. dollars- except share data)
	December 31, 2019(unaudited)				December 31, 2018
ASSETS
Cash and cash equivalents, including restricted cash	$	44,051			$	46,609
Vessels, net		1,348,251				1,383,605
Other assets (including current and non-current)	$	162,074			$	158,946
Goodwill		1,579				1,579
Intangible assets		—				36,645
Total assets	$	1,555,955			$	1,627,384
LIABILITIES AND STOCKHOLDERS’ EQUITY
Other current liabilities	$	68,986			$	41,195
Long-term debt, including current portion, net of deferred finance costs and premium		1,173,117				1,205,837
Total liabilities	$	1,242,103			$	1,247,032
Total stockholders’ equity		313,852				380,352
Total liabilities and stockholders’ equity	$	1,555,955			$	1,627,384

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 Months Ended December 31, 2019 (unaudited)				For the Three Months Ended December 31, 2018 (unaudited)				For the Year Ended December 31, 2019 (unaudited)				For the Year Ended December 31, 2018
Revenue	$	85,448			$	58,728			$	280,117			$	187,946
Time charter and voyage expenses		(8,350	)			(9,844	)			(22,690	)			(31,593	)
Direct vessel expenses		(3,015	)			(2,405	)			(10,132	)			(7,656	)
Management fees		(26,524	)			(24,367	)			(107,748	)			(94,019	)
General and administrative expenses		(6,012	)			(7,357	)			(21,689	)			(18,569	)
Depreciation and amortization		(15,635	)			(14,544	)			(67,892	)			(56,307	)
(Loss)/ gain on sale of vessels/ Impairment loss		—				—				(36,731	)			25
Gain on debt extinguishment		1,940				—				1,940				—
Interest income		877				2,123				7,717				7,998
Interest expense and finance cost		(21,968	)			(20,058	)			(91,442	)			(77,975	)
Equity in net earnings of affiliated companies, including bargain purchase gain		278				3,204				2,948				7,667
Other income		—				15				1,335				28
Other expense		(395	)			(1,926	)			(1,174	)			(3,918	)
Net earnings/ (loss)	$	6,644			$	(16,431	)		$	(65,441	)		$	(86,373	)
Net earnings/ (loss) per share, basic and diluted	$	0.44			$	(1.55	)		$	(4.75	)		$	(8.40	)
Weighted average number of shares, basic		14,942,219				10,097,603				13,823,754				9,784,507
Weighted average number of shares, diluted		15,149,917				10,097,603				13,823,754				9,784,507

EXHIBIT II
Reconciliation of EBITDA and Adjusted EBITDA to Net Cash from Operating Activities
	Three Month Period Ended December 31, 2019 (unaudited)				Three Month Period Ended December 31, 2018 (unaudited)				Year Ended December 31, 2019 (unaudited)				Year Ended December 31, 2018 (unaudited)
Expressed in thousands of U.S. dollars
Net cash provided by/ (used in) operating activities	$	8,186			$	(14,854	)		$	29,244			$	(38,709	)
Net decrease/ (increase) in operating assets		20,441				(4,602	)			10,527				(2,152	)
Net (decrease)/ increase in operating liabilities		(4,472	)			14,416				2,941				(3,834	)
Net interest cost		21,091				17,935				83,725				69,977
Amortization and write-off of deferred finance costs and bond premium		(1,452	)			(883	)			(4,798	)			(3,743	)
Equity in net earnings of affiliated companies, including bargain purchase gain		278				3,204				2,948				7,667
Payments for dry dock and special survey costs		84				3,497				6,865				19,412
Gain on sale of vessels/ Impairment loss		—				—				(4,042	)			25
Gain on debt extinguishment		1,940				—				1,940				—
Stock-based compensation		(215	)			(260	)			(909	)			(1,076	)
EBITDA	$	45,881			$	18,453			$	128,441			$	47,567
Net negative effect on equity/ (loss) in net earnings of affiliated companies due to sale of the Shinyo Kannika by Navios Midstream to an unaffiliated third party		—				—				—				6,005
Gain on sale of vessels/ Impairment loss		—				—				4,042				(25	)
Transaction costs in relation to the merger with Navios Midstream		—				2,175				—				2,175
Gain on debt extinguishment		(1,940	)			—				(1,940	)			—
Stock-based compensation		215				260				909				1,076
Adjusted EBITDA	$	44,156			$	20,888			$	131,452			$	56,798

		Three Month Period Ended December 31, 2019 (unaudited)			Three Month Period Ended December 31, 2018 (unaudited)				Year Ended December 31, 2019 (unaudited)					Year Ended December 31, 2018 (unaudited)
Net cash provided by/ (used in) operating activities	$	8,186			$	(14,854	)		$	29,244				(38,709	)
Net cash (used in)/ provided by investing activities	$	(27,316	)		$	26,836			$	4,027				79,813
Net cash used in financing activities	$	(39,691	)		$	(13,686	)		$	(35,829	)			(80,953	)

Disclosure of Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, Adjusted net (loss)/ income and Adjusted (loss)/ income per share (basic) are non-U.S. GAAP financial measures 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 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 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/ (loss) in net earnings of affiliates, net of dividends received; (vi) payments for dry dock and special survey costs; (vii) impairment charges; (viii) gain on sale of assets; (ix) gain/ (loss) on debt repayment; (x) stock- based compensation and (xi) transaction costs. 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
Star N	MR1 Product Tanker		2009	37,836
Hector N	MR1 Product Tanker		2008	38,402
Perseus N	MR1 Product Tanker		2009	36,264
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
Lumen N	LR1 Product Tanker		2008	63,599
Aurora N	LR1 Product Tanker		2008	63,495
Nave Neutrino	VLCC		2003	298,287
Nave Celeste	VLCC		2003	298,717
Nave Photon	VLCC		2008	297,395
Nave Spherical	VLCC		2009	297,188
Nave Galactic	VLCC		2009	297,168
Nave Quasar	VLCC		2010	297,376
Nave Synergy		VLCC	2010	299,973
Nave Constellation	VLCC		2010	298,000
Nave Universe	VLCC		2011	297,066
Nave Buena Suerte	VLCC		2011	297,491
Vessels to be delivered*
TBN I	VLCC		Expected Q3 2020	310,000
TBN II	VLCC		Expected Q4 2020	310,000
TBN III	VLCC		Expected Q3 2021	310,000

 *Bareboat chartered-in vessels with purchase option