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.
| (Expressed in
thousands of U.S. dollars) |
|
Three Month Period ended September 30,
2017 (unaudited) |
Three Month Period ended September 30,
2016 (unaudited) |
|
Nine Month Period ended September 30,
2017 (unaudited) |
Nine Month Period ended September 30, 2016
(unaudited) |
| Revenue |
|
$ |
54,021 |
|
$ |
68,069 |
|
|
$ |
176,961 |
|
$ |
222,983 |
|
| Net (loss)/income |
|
$ |
(8,105 |
) |
$ |
8,817 |
|
|
$ |
(66,907 |
) |
$ |
44,771 |
|
| Adjusted net (loss)/
income |
|
$ |
(8,105 |
) |
$ |
9,084 |
(2) |
|
$ |
(7,107 |
)(1) |
$ |
43,498 |
(2) |
| Net cash provided by
operating activities |
|
$ |
22,509 |
|
$ |
40,104 |
|
|
$ |
55,648 |
|
$ |
90,341 |
|
| EBITDA |
|
$ |
23,303 |
|
$ |
41,706 |
|
|
$ |
28,660 |
|
$ |
144,660 |
|
| Adjusted EBITDA |
|
$ |
23,303 |
|
$ |
41,973 |
(2) |
|
$ |
87,
764 |
(1) |
$ |
143,173 |
(2) |
| (Loss)/income per share
(basic) |
|
$ |
(0.05 |
) |
$ |
0.06 |
|
|
$ |
(0.42 |
) |
$ |
0.28 |
|
| Adjusted (loss)/income
per share (basic) |
|
$ |
(0.05 |
) |
$ |
0.06 |
(2) |
|
$ |
(0.04 |
)(1) |
$ |
0.28 |
(2) |
(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.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three month period endedSeptember 30, |
|
|
Nine month period endedSeptember 30, |
|
| |
|
2017(unaudited) |
|
|
2016(unaudited) |
|
|
2017(unaudited) |
|
|
2016(unaudited) |
|
| FLEET
DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Available days(1) |
|
|
3,215 |
|
|
|
3,496 |
|
|
|
9,678 |
|
|
|
10,410 |
|
| Operating days(2) |
|
|
3,205 |
|
|
|
3,489 |
|
|
|
9,660 |
|
|
|
10,388 |
|
| Fleet
utilization(3) |
|
|
99.7 |
% |
|
|
99.8 |
% |
|
|
99.8 |
% |
|
|
99.8 |
% |
| Vessels operating at
period end |
|
|
36 |
|
|
|
38 |
|
|
|
36 |
|
|
|
38 |
|
| AVERAGE DAILY
RESULTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Time charter equivalent
rate per day(4) |
|
$ |
16,486 |
|
|
$ |
19,159 |
|
|
$ |
17,814 |
|
|
$ |
21,082 |
|
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, 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+1.212.906.8644info@navios-acquisition.com
| EXHIBIT I |
| NAVIOS MARITIME ACQUISITION
CORPORATION |
| CONDENSED CONSOLIDATED BALANCE
SHEETS |
| (Expressed in thousands of U.S. dollars- except share
data) |
| |
| |
|
|
|
September 30,2017(unaudited) |
|
|
December 31,2016(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
| Current
assets |
|
|
|
|
|
|
|
|
|
|
| Cash and cash
equivalents |
|
|
|
$ |
58,211 |
|
|
$ |
49,292 |
|
| Restricted cash |
|
|
|
|
4,166 |
|
|
|
7,366 |
|
| Accounts receivable,
net |
|
|
|
|
12,519 |
|
|
|
20,933 |
|
| Due from related
parties, short-term |
|
|
|
|
15,427 |
|
|
|
25,047 |
|
| Prepaid expenses and
other current assets |
|
|
|
|
4,444 |
|
|
|
4,644 |
|
| Total current
assets |
|
|
|
|
94,767 |
|
|
|
107,282 |
|
| Vessels, net |
|
|
|
|
1,264,263 |
|
|
|
1,306,923 |
|
| Goodwill |
|
|
|
|
1,579 |
|
|
|
1,579 |
|
| Other long-term
assets |
|
|
|
|
900 |
|
|
|
900 |
|
| Deferred dry dock and
special survey costs, net |
|
|
|
|
17,720 |
|
|
|
10,172 |
|
| Investment in
affiliates |
|
|
|
|
126,789 |
|
|
|
196,695 |
|
| Due from related
parties, long-term |
|
|
|
|
107,633 |
|
|
|
80,068 |
|
| Total
non-current assets |
|
|
|
|
1,518,884 |
|
|
|
1,596,337 |
|
| Total
assets |
|
|
|
$ |
1,613,651 |
|
|
$ |
1,703,619 |
|
| LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
| Current
liabilities |
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
|
$ |
3,147 |
|
|
$ |
4,855 |
|
| Accrued expenses |
|
|
|
|
25,144 |
|
|
|
11,047 |
|
| Due to related parties,
short-term |
|
|
|
|
12,365 |
|
|
|
— |
|
| Deferred revenue |
|
|
|
|
8,553 |
|
|
|
8,519 |
|
| Current portion of
long-term debt, net of deferred finance costs |
|
|
|
|
53,994 |
|
|
|
55,000 |
|
| Total current
liabilities |
|
|
|
|
103,203 |
|
|
|
79,421 |
|
| Long-term debt, net of
current portion, premium and net of deferred finance costs |
|
|
|
|
1,020,915 |
|
|
|
1,040,938 |
|
| Deferred gain on sale
of assets |
|
|
|
|
6,973 |
|
|
|
7,829 |
|
| Total
non-current liabilities |
|
|
|
|
1,027,888 |
|
|
|
1,048,767 |
|
| Total
liabilities |
|
|
|
$ |
1,131,091 |
|
|
$ |
1,128,188 |
|
| Commitments and
contingencies |
|
|
|
|
— |
|
|
|
— |
|
| Puttable common
stock 25,000 and 250,000 shares issued and outstanding with $250
and $2,500 redemption amount as of September 30, 2017 and
December 31, 2016, respectively |
|
|
|
|
250 |
|
|
|
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 September 30, 2017 and
December 31, 2016. |
|
|
|
|
— |
|
|
|
— |
|
| Common stock, $0.0001
par value; 250,000,000 shares authorized; 150,357,990 and
150,582,990 issued and outstanding as of September 30, 2017
and December 31, 2016, respectively |
|
|
|
|
15 |
|
|
|
15 |
|
| Additional paid-in
capital |
|
|
|
|
525,914 |
|
|
|
541,720 |
|
| (Accumulated deficit)/
Retained earnings |
|
|
|
|
(43,619 |
) |
|
|
31,196 |
|
| Total
stockholders’ equity |
|
|
|
|
482,310 |
|
|
|
572,931 |
|
| Total
liabilities and stockholders’ equity |
|
|
|
$ |
1,613,651 |
|
|
$ |
1,703,619 |
|
| NAVIOS MARITIME ACQUISITION
CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
| (Expressed in thousands of U.S. dollars- except share
and per share data) |
| |
| |
|
|
|
For the Three |
|
For the Three |
|
For the Nine |
|
For the Nine |
| |
|
|
|
Months |
|
Months |
|
Months |
|
Months |
| |
|
|
|
Ended |
|
Ended |
|
Ended |
|
Ended |
| |
|
|
|
September 30, 2017 |
|
September 30, 2016 |
|
September 30, 2017 |
|
September 30, 2016 |
| |
|
|
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
|
(unaudited) |
| Revenue |
|
|
|
$ |
54,021 |
|
|
$ |
68,069 |
|
|
$ |
176,961 |
|
|
$ |
222,983 |
|
| Time charter and voyage
expenses |
|
|
|
|
(7,030 |
) |
|
|
(1,087 |
) |
|
|
(15,793 |
) |
|
|
(3,525 |
) |
| Direct vessel
expenses |
|
|
|
|
(1,053 |
) |
|
|
(741 |
) |
|
|
(2,880 |
) |
|
|
(2,790 |
) |
| Management fees
(entirely through related party transactions) |
|
|
|
|
(23,939 |
) |
|
|
(25,107 |
) |
|
|
(71,035 |
) |
|
|
(73,611 |
) |
| General and
administrative expenses |
|
|
|
|
(2,837 |
) |
|
|
(3,282 |
) |
|
|
(9,293 |
) |
|
|
(12,792 |
) |
| Depreciation and
amortization |
|
|
|
|
(14,220 |
) |
|
|
(14,220 |
) |
|
|
(42,660 |
) |
|
|
(43,397 |
) |
| Gain on sale of
vessel |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,282 |
|
| Interest income |
|
|
|
|
2,755 |
|
|
|
1,055 |
|
|
|
7,495 |
|
|
|
2,589 |
|
| Interest expense and
finance cost |
|
|
|
|
(18,890 |
) |
|
|
(18,983 |
) |
|
|
(57,522 |
) |
|
|
(57,021 |
) |
| Equity/ (loss) in net
earnings of affiliated companies |
|
|
|
|
3,752 |
|
|
|
3,194 |
|
|
|
(51,208 |
) |
|
|
11,816 |
|
| Other expense, net |
|
|
|
|
(664 |
) |
|
|
(81 |
) |
|
|
(972 |
) |
|
|
(1,763 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss)/
income |
|
|
|
$ |
(8,105 |
) |
|
$ |
8,817 |
|
|
$ |
(66,907 |
) |
|
$ |
44,771 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (loss)/ income per
share, basic and diluted |
|
|
|
$ |
(0.05 |
) |
|
$ |
0.06 |
|
|
$ |
(0.42 |
) |
|
$ |
0.28 |
|
| Weighted average number
of shares, basic |
|
|
|
|
150,379,186 |
|
|
|
149,984,072 |
|
|
|
150,438,485 |
|
|
|
149,774,591 |
|
| Weighted average number
of shares, diluted |
|
|
|
|
150,379,186 |
|
|
|
150,684,077 |
|
|
|
150,438,485 |
|
|
|
150,786,684 |
|
| NAVIOS MARITIME ACQUISITION
CORPORATION |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
| (Expressed in thousands of U.S. dollars) |
| |
| |
|
|
|
For the Nine MonthsEnded September 30, 2017(unaudited) |
|
For the Nine MonthsEnded September 30, 2016(unaudited) |
| Operating
Activities |
|
|
|
|
|
|
|
|
|
|
| Net (loss)/ income |
|
|
|
$ |
(66,907 |
) |
|
$ |
44,771 |
|
| Adjustments to
reconcile net (loss)/ income to net cash provided by operating
activities: |
|
|
|
|
|
|
|
|
|
|
| Depreciation and
amortization |
|
|
|
|
42,660 |
|
|
|
43,397 |
|
| Amortization and
write-off of deferred finance fees and bond premium |
|
|
|
|
3,322 |
|
|
|
2,688 |
|
| Amortization of dry
dock and special survey costs |
|
|
|
|
2,880 |
|
|
|
2,060 |
|
| Stock based
compensation |
|
|
|
|
— |
|
|
|
795 |
|
| Gain on sale of
vessel |
|
|
|
|
— |
|
|
|
(2,282 |
) |
| Equity/ (loss) in net
earnings of affiliates, net of dividends received |
|
|
|
|
57,941 |
|
|
|
(1,058 |
) |
| Changes in
operating assets and liabilities: |
|
|
|
|
|
|
|
|
|
|
| Increase in prepaid
expenses and other current assets |
|
|
|
|
(300 |
) |
|
|
(526 |
) |
| Decrease/ (increase) in
accounts receivable |
|
|
|
|
8,414 |
|
|
|
(1,462 |
) |
| Decrease/ (increase) in
due from related parties, short-term |
|
|
|
|
9,620 |
|
|
|
(2,770 |
) |
| Increase in restricted
cash |
|
|
|
|
(10 |
) |
|
|
(97 |
) |
| Increase in other long
term assets |
|
|
|
|
— |
|
|
|
(490 |
) |
| Increase in due from
related parties, long-term |
|
|
|
|
(16,348 |
) |
|
|
(6,404 |
) |
| (Decrease)/ increase in
accounts payable |
|
|
|
|
(1,708 |
) |
|
|
1,589 |
|
| Increase in accrued
expenses |
|
|
|
|
14,097 |
|
|
|
13,928 |
|
| Payments for dry dock
and special survey costs |
|
|
|
|
(10,427 |
) |
|
|
(2,350 |
) |
| Increase in due to
related parties, short-term |
|
|
|
|
12,365 |
|
|
|
— |
|
| Increase/ (decrease) in
deferred revenue |
|
|
|
|
49 |
|
|
|
(1,448 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Net cash
provided by operating activities |
|
|
|
$ |
55,648 |
|
|
$ |
90,341 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Investing
Activities |
|
|
|
|
|
|
|
|
|
|
| Loans receivable from
affiliates |
|
|
|
|
(9,061 |
) |
|
|
(4,275 |
) |
| Dividends received from
affiliates |
|
|
|
|
9,242 |
|
|
|
5,205 |
|
| Investment in
affiliates |
|
|
|
|
(84 |
) |
|
|
(75 |
) |
| Net cash proceeds from
sale of vessel |
|
|
|
|
— |
|
|
|
18,449 |
|
| Loan receivable from
affiliate, net of issuance fee and costs |
|
|
|
|
— |
|
|
|
(49,470 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Net cash
provided by / (used in) investing activities |
|
|
|
$ |
97 |
|
|
$ |
(30,166 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Financing
Activities |
|
|
|
|
|
|
|
|
|
|
| Loan proceeds, net of
deferred finance costs |
|
|
|
|
49,764 |
|
|
|
— |
|
| Loan repayments |
|
|
|
|
(73,836 |
) |
|
|
(46,100 |
) |
| Dividend paid |
|
|
|
|
(23,714 |
) |
|
|
(23,769 |
) |
| Decrease in restricted
cash |
|
|
|
|
3,210 |
|
|
|
1,125 |
|
| Redemption of
convertible shares and puttable common stock |
|
|
|
|
(2,250 |
) |
|
|
(3,000 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Net cash used
in financing activities |
|
|
|
$ |
(46,826 |
) |
|
$ |
(71,744 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| Net increase/
(decrease) in cash and cash equivalents |
|
|
|
|
8,919 |
|
|
|
(11,569 |
) |
| Cash and cash
equivalents, beginning of period |
|
|
|
|
49,292 |
|
|
|
54,805 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Cash and cash
equivalents, end of period |
|
|
|
$ |
58,211 |
|
|
$ |
43,236 |
|
| |
|
|
|
|
|
|
|
|
|
|
| EXHIBIT II |
| Reconciliation of EBITDA and Adjusted EBITDA to Net
Cash from Operating Activities |
| |
| |
|
Three MonthPeriodEndedSeptember 30,2017(unaudited) |
|
|
Three MonthPeriodEndedSeptember 30,2016(unaudited) |
|
|
Nine
MonthPeriodEndedSeptember 30,2017(unaudited) |
|
|
Nine
MonthPeriodEndedSeptember 30,2016(unaudited) |
|
| Expressed in
thousands of U.S. dollars |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net cash provided by
operating activities |
|
$ |
22,509 |
|
|
$ |
40,104 |
|
|
$ |
55,648 |
|
|
$ |
90,341 |
|
| Net (decrease)/
increase in operating assets |
|
|
(1,771 |
) |
|
|
(2,832 |
) |
|
|
(1,376 |
) |
|
|
11,749 |
|
| Net increase in
operating liabilities |
|
|
(18,798 |
) |
|
|
(12,654 |
) |
|
|
(24,803 |
) |
|
|
(14,069 |
) |
| Net interest cost |
|
|
16,135 |
|
|
|
17,928 |
|
|
|
50,027 |
|
|
|
54,432 |
|
| Amortization and
write-off of deferred finance costs and bond premium |
|
|
(743 |
) |
|
|
(824 |
) |
|
|
(3,322 |
) |
|
|
(2,688 |
) |
| Equity/ (loss) in net
earnings of affiliates (including OTTI loss), net of dividends
received |
|
|
472 |
|
|
|
225 |
|
|
|
(57,941 |
) |
|
|
1,058 |
|
| Payments for dry dock
and special survey costs |
|
|
5,499 |
|
|
|
26 |
|
|
|
10,427 |
|
|
|
2,350 |
|
| Gain on sale of
vessel |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,282 |
|
| Stock based
compensation |
|
|
— |
|
|
|
(267 |
) |
|
|
— |
|
|
|
(795 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA |
|
$ |
23,303 |
|
|
$ |
41,706 |
|
|
$ |
28,660 |
|
|
$ |
144,660 |
|
|
Other-than-temporary-impairment loss on equity investment |
|
|
— |
|
|
|
— |
|
|
|
59,104 |
|
|
|
— |
|
| Gain on sale of
vessel |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,282 |
) |
| Stock based
compensation |
|
|
— |
|
|
|
267 |
|
|
|
— |
|
|
|
795 |
|
| Adjusted
EBITDA |
|
$ |
23,303 |
|
|
$ |
41,973 |
|
|
$ |
87,764 |
|
|
$ |
143,173 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
Three MonthPeriodEndedSeptember 30,2017(unaudited) |
|
|
Three MonthPeriodEndedSeptember 30,2016(unaudited) |
|
|
Nine
MonthPeriodEndedSeptember 30,2017(unaudited) |
|
|
Nine
MonthPeriodEndedSeptember 30,2016(unaudited) |
|
| Net cash provided by
operating activities |
|
$ |
22,509 |
|
|
$ |
40,104 |
|
|
$ |
55,648 |
|
|
$ |
90,341 |
|
| Net cash provided by/
(used in) investing activities |
|
$ |
2,045 |
|
|
$ |
(47,193 |
) |
|
$ |
97 |
|
|
$ |
(30,166 |
) |
| Net cash used in
financing activities |
|
$ |
(17,887 |
) |
|
$ |
(19,211 |
) |
|
$ |
(46,826 |
) |
|
$ |
(71,744 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.
| EXHIBIT III |
| Vessels |
Type |
Year Built/Delivery |
DWT |
| Date |
| Owned
Vessels |
|
|
|
|
| Nave Polaris |
Chemical Tanker |
2011 |
|
25,145 |
| Nave Cosmos |
Chemical Tanker |
2010 |
|
25,130 |
| Nave Velocity |
MR2 Product Tanker |
2015 |
|
49,999 |
| Nave Sextans |
MR2 Product Tanker |
2015 |
|
49,999 |
| Nave Pyxis |
MR2 Product Tanker |
2014 |
|
49,998 |
| Nave Luminosity |
MR2 Product Tanker |
2014 |
|
49,999 |
| Nave Jupiter |
MR2 Product Tanker |
2014 |
|
49,999 |
| Bougainville |
MR2 Product Tanker |
2013 |
|
50,626 |
| Nave Alderamin |
MR2 Product Tanker |
2013 |
|
49,998 |
| Nave Bellatrix |
MR2 Product Tanker |
2013 |
|
49,999 |
| Nave Capella |
MR2 Product Tanker |
2013 |
|
49,995 |
| Nave Orion |
MR2 Product Tanker |
2013 |
|
49,999 |
| Nave Titan |
MR2 Product Tanker |
2013 |
|
49,999 |
| Nave Aquila |
MR2 Product Tanker |
2012 |
|
49,991 |
| Nave Atria |
MR2 Product Tanker |
2012 |
|
49,992 |
| Nave Orbit |
MR2 Product Tanker |
2009 |
|
50,470 |
| Nave Equator |
MR2 Product Tanker |
2009 |
|
50,542 |
| Nave Equinox |
MR2 Product Tanker |
2007 |
|
50,922 |
| Nave Pulsar |
MR2 Product Tanker |
2007 |
|
50,922 |
| Nave Dorado |
MR2 Product Tanker |
2005 |
|
47,999 |
| Nave Atropos |
LR1 Product Tanker |
2013 |
|
74,695 |
| Nave Rigel |
LR1 Product Tanker |
2013 |
|
74,673 |
| Nave Cassiopeia |
LR1 Product Tanker |
2012 |
|
74,711 |
| Nave Cetus |
LR1 Product Tanker |
2012 |
|
74,581 |
| Nave Estella |
LR1 Product Tanker |
2012 |
|
75,000 |
| Nave Andromeda |
LR1 Product Tanker |
2011 |
|
75,000 |
| Nave Ariadne |
LR1 Product Tanker |
2007 |
|
74,671 |
| Nave Cielo |
LR1 Product Tanker |
2007 |
|
74,671 |
| Nave Buena Suerte |
VLCC |
2011 |
|
297,491 |
| Nave Quasar |
VLCC |
2010 |
|
297,376 |
| Nave Synergy |
VLCC |
2010 |
|
299,973 |
| Nave Galactic |
VLCC |
2009 |
|
297,168 |
| Nave Spherical |
VLCC |
2009 |
|
297,188 |
| Nave Photon |
VLCC |
2008 |
|
297,395 |
| Nave Neutrino |
VLCC |
2003 |
|
298,287 |
| Nave Electron |
VLCC |
2002 |
|
305,178 |
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